Lavage Rapide is a Canadian company that owns and operates a large automatic car

Question

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs Fixed Cost per Month Cost Car Washed per Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.60 0.07 $0.10 0.30 $1,100 $4.200 $8,100 $1,900 $1,800 0.03 For example, electricity costs are $1,100 per month plus $0.07 per car washed. The company expected to wash 8,300 cars in August and to collect an average of $6.10 per car washed. The company actually washed 8,400 cars The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: 8.400 S 52,730 5,480 1.651 1,070 7,050 8,100 2,100 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 27.400 S 25.330

Explanation / Answer

Expected Actual Activity Variance Revenue       50,630       51,240                           610 F Cleaning Supplies         4,980         5,040                               6 F Electricity         1,681         1,688                               7 F Maintenance            830            840                             10 F Wages and Salaries         6,690         6,720                             30 F Depreciation         8,100         8,100                              -   Rent         1,900         1,900                              -   Administrative Expenses         2,049         2,052                               3 F

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