Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lavage rapide is a canadian company that owns and

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near...

Free

70.2K

Verified Solution

Question

Accounting

Lavage Rapide is a Canadian company that owns and operates alarge automatic carwash facility near Montreal. The following tableprovides data concerning the company’s costs:

Fixed Costs Per MonthCost Per Car Washed
Cleaning Supplies.70
Electricity1,100.09
Maintenance.15
Wages And Salary4,600.30
Depreciation8,100
Rent2,000
Admin. Expense1,300.04

For example, electricity costs are $1,100 per month plus $0.09per car washed. The company expected to wash 8,300 cars in Augustand to collect an average of $6.50 per car washed.

The actual operating results for August appear below.

Lavage Rapide
Income Statement
For the Month Ended August 31
  Actual cars washed8,400   
  Revenue$56,050   
  Expenses:
      Cleaning supplies6,310   
      Electricity1,817   
      Maintenance1,485   
      Wages and salaries7,450   
      Depreciation8,100   
      Rent2,200   
      Administrativeexpenses1,532   
  Total expense28,894   
  Net operating income$27,156   

Compute the company's revenue and spending variances for August.(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Input all amounts as positive values.)

  

Answer & Explanation Solved by verified expert
3.7 Ratings (575 Votes)

LAVAGE RIPIDE
Revenue and Spending variance
for the month ended August 31
Expected Budgeted Variance
Car Wash (Units)                   8,300                  8,400                    (100)
Revenues   $      53,950.00 $      56,050.00 $ 2,100.00 U
Expenses:
Cleaning supplies $         5,810.00 $        6,310.00 $ 500.00 U
Electricity $         1,847.00 $        1,817.00 $ 30.00 F
Maintenance $         1,245.00 $        1,485.00 $ 240.00 U
Wages & Salaries $         7,090.00 $        7,450.00 $ 360.00 U
Depreciation $         8,100.00 $        8,100.00 $ 0.00 None
Rent $         2,000.00 $        2,200.00 $ 200.00 U
Administrative expense $         1,632.00 $        1,532.00 $ 100.00 F
Total expenses $      27,724.00 $      28,894.00 $ 1,170.00 U
Net Operating Income $      26,226.00 $      27,156.00 $ 930.00 U

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

1 The members of Photography Club at Manchester High measured their heights and came up...

Basic Math
1.2K views

f(x)=x4?8x2 a. Interval(s) of increase/decrease b. Local maximum and minimum values as coordinates (x,y) c. Intervals of concavity d....

Psychology
1.2K views

Should term limits be imposed on members of the House and Senate? Why or why not?...

Biology
1.2K views

The grouping of gestures, facial expressions, and postures into nonverbal statementsis known as____.ClusteringKinesicsTelekinetic

Accounting
1.2K views

Determine the missing amounts usine followirg information

Accounting
1.2K views

Thanks! You are given the following information. The sales-to-capital ratio is 3.5....

Accounting
1.2K views

Identify the specific type of budget - Long-range - Annual - Achievement that would best...

Accounting
1.2K views

SSIGNMENT Click here for instructions Assignment: Ethics in Accounting Due Week 9 and worth 120...

Accounting
1.2K views

Joan filed her individual income tax return 5 months after it was due. She did...

Finance
1.2K views

Determine the final value (rounded) of $1,500 invested for 20 years at 4% compounded annually....

Finance
1.2K views

We are evaluating a project that costs $864,000, has an eight-year life, and has no...

Accounting
1.2K views

Locke, CPA, was engaged by Hall Inc. to audit Willow Company. Hall purchased Willow after...