Lavage Rapide is a Canadian company that owns and operates a large automatic car wash...
90.2K
Verified Solution
Link Copied!
Question
Accounting
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: Fixed Cost Cost per per Month Car Washed Cleaning supplies $ 0.80 Electricity $ 1,000 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,300 $ 0.20 Depreciation $ 8,200 Rent $ 2,000 Administrative expenses $ 1,700 $ 0.03 For example, electricity costs should be $1,000 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 per car washed. The company actually washed 8,500 cars in August Required: Calculate the company's activity variances for August (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
Answer & Explanation
Solved by verified expert
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!
