Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: cleaning supplies Electricity Maintenance Mages and salaries Depreciation Rent Administrative expenses $ 0.04 For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement for the Month Ended August 31 Actual cars washed Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Fixed Cost per Cost per Month Car Washed $0.80 $ 1,200 $4,400 $ 8,100 $ 2,100 $ 1,800 Rent Administrative expenses Total expense Bet operating Locome 8,400 $56,050 7,140 2,000 1,900 7,250 $ 0.10 $ 0.20 $ 0.30 6,100 2,300 2,032 30,322 $ 25,328 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.)
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: cleaning supplies Electricity Maintenance Mages and salaries Depreciation Rent Administrative expenses $ 0.04 For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement for the Month Ended August 31 Actual cars washed Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Fixed Cost per Cost per Month Car Washed $0.80 $ 1,200 $4,400 $ 8,100 $ 2,100 $ 1,800 Rent Administrative expenses Total expense Bet operating Locome 8,400 $56,050 7,140 2,000 1,900 7,250 $ 0.10 $ 0.20 $ 0.30 6,100 2,300 2,032 30,322 $ 25,328 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.)
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning