Return to question Lavage Rapide is a Canadian company that owns and operates a large...

80.2K

Verified Solution

Question

Accounting

image
image
image
Return to question Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month Cost per Car Washed $0.70 $0.09 $0.15 $0.30 Cleaning supplies Electricity $1,500 Maintenance Wages and salaries Depreciation Rent Administratiive expenses $4,900 $8,400 $2,000 $1,800 $0.04 For example, electricity costs are $1,500 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 per car washed. The company actually washed 8,500 cars in August. Required: Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Answer is complete but not entirely correct. Lavage Rapide Activity Variances For the Month Ended August 31 2$ Revenue 650 Expenses: Cleaning supplies (2,170) (139) 8 U (1,015) O U (1,150) OU Electricity Maintenance Wages and salaries Depreciation 0O None Rent (300) None Administrative expenses Total expense (3,354) O U (5,498) 8 U $ (4,848) 8F Net operating income it is Can't figure wrong. why Please help? aut

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!
Become a Member

Other questions asked by students