Login

Lavage Rapide owns and operates a large automatic car wash facility near...

60.1K

Verified Solution

Question

Accounting

Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs:

Fixed Cost per Month Cost per Car Washed

Cleaning supplies $ $0.80$

Electricity $ $1, 200$ $ $0.15$

Maintenance $ $0.20$

Wages and salaries $ $5, 000$ $ $0.30$

Depreciation $ $6, 000$

Rent $ $8, 000$

Administrative expenses $ $4, 000$ $ $0.10$

For example, electricity costs should be $ $1, 200$ per month plus $ $0.15$ per car washed. The company expects to wash $9, 000$ cars in August and to collect an average of $ $4.90$ 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 $8, 800$

Revenue $ $43, 080$

Expenses:

Cleaning supplies $7, 560$

Electricity $2, 670$

Maintenance $2, 260$

Wages and salaries $8, 500$

Depreciation $6, 000$

Rent $8, 000$

Administrative expenses $4, 950$

Total expenses $39, 940$

Net operating income $ $3, 140$

Required:

Prepare a flexible budget performance report for August.

Note: 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.

Answer & Explanation Solved by verified expert

answer-section

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

Finance

1.2K views

Madsen Motors's bonds have 10 years remaining to maturity. Interest is paid annually, they have a...

Physics

1.2K views

67 Six charges are placed at the vertices of a regular hexagon of side length...

Physics

1.2K views

49 A body of mass 5 kg hangs from a spring and oscillates with a...

Physics

1.2K views

When capillary is dipped into liquid the levels of liquid inside and outside are equal...

Basic Math

1.2K views

After a baby was born, he began to gain weight at a rate of 1.5...

Basic Math

1.2K views

Mr Zepplin wanted to see how different types of music affected students pulse rates He...

Statistics

1.2K views

Sleeping outlier A simple random sample of ten coll 8 6 5 9 8 5...

Statistics

1.2K views

The combined scores of the almost 1.7 million high school seniors taking the SAT in...

Calculus

1.2K views

H z 4 Give exact answers not decimal approximations Let f x Find the values...

Calculus

1.2K views

1 Find a value of c such that the conclusion of the mean 3 value...

Accounting

1.2K views

Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on...

Accounting

1.2K views

Problem 7-05A a-b (Part Level Submission) (Video) The bank portion of the bank reconciliation for...

1 Answer

$0.99

~~$1.99~~

(Save $1 )

One time Pay

No Ads
Answer to 1 Question
Get free Zin AI - 50 Thousand Words per Month

Best

Unlimited

$4.99*

~~$9.99~~

(Save $5 )

Billed Monthly

No Ads
Answers to Unlimited Questions
Get free Zin AI - 3 Million Words per Month

*First month only

Free

$0

Get this answer for free!
Sign up now to unlock the answer instantly

You can see the logs in the Dashboard.

Sign In

Don't have an account? Sign Up