Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility...
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Accounting
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys costs:
| Fixed Cost per Month | Cost per Car Washed | ||||
| Cleaning supplies | $ | 0.80 | |||
| Electricity | $ | 3,000 | 0.20 | ||
| Maintenance | 0.40 | ||||
| Wages and salaries | 6,300 | 0.50 | |||
| Depreciation | 9,900 | ||||
| Rent | 3,700 | ||||
| Administrative expenses | 3,400 | 0.04 | |||
|
| |||||
The company expects to charge customers an average of $7.50 per car washed.
Required: Prepare a flexible budget for October assuming either 9,500 or 10,500 cars are washed.
AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Cars Washed Unit (per car) 9,500 10,500 Sales Variable expenses: Total variable expenses 0.00 0 0 $ 0.00 0 0 Fixed expenses: Total fixed expenses 0 0 $ $ $ 0 O
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