Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides estimates concerning the company's costs:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesFixed Cost Cost perper Month Car Washed$ 0.50$ 1,300$ 0.07$ 0.15$ 4,500$ 0.20$ 8,200$ 1,800$ 1,500$ 0.02For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8,500 cars inAugust and to collect an average of $6.50 per car washed.The actual operating results for August are as follows:Lavage RapideIncome StatementFor the Month Ended August 31Actual cars washedRevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating incomeRequired:8,600$ 57,3504,7501,8651,5156,5608,2002,0001,57026,460$ 30,890Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances forAugust. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance). Input all amounts as positive values.)Lavage RapideFlexible Budget Performance ReportFor the Month Ended August 31Cars washedRevenueActualResults8,600$57,350Expenses:Cleaning supplies4,750Electricity1,865Maintenance1,515Wages and salaries6,560Depreciation8,200RentAdministrative expenses2,0001,570Total expense26,460Net operating income$ 30,890FlexiblePlanningBudgetBudget

Flexible budget performance report is the one which is prepared to determine the revenue/ spending…

avage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table rovides estimates concerning the company's costs: Cleaning supplies Fixed Cost Cost per per Month Car Washed $0.50

avage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table rovides estimates concerning the company's costs: Cleaning supplies Fixed Cost Cost per per Month Car Washed $0.50

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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...

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