Lavage Rapide Is A Canadian Company That Owns And Operates A Large Automatic Car Wash Facility Near Montreal The Follow 1 (29.75 KiB) Viewed 34 times
Lavage Rapide Is A Canadian Company That Owns And Operates A Large Automatic Car Wash Facility Near Montreal The Follow 2 (29.01 KiB) Viewed 34 times
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 Cost per per Month Car Washed Cleaning supplies $0.50 Electricity $1,100 $0.06 Maintenance $0.20 Wages and salaries $4,200 $0.30 Depreciation $8,400 Rent $1,800 Administrative expenses $1,780 $0.93 For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $610 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 8,400 Revenue $ 52,730 Expenses: Cleaning supplies 4,650 Electricity 1,568 Maintenance 1,900 Wages and salaries 7,050 Depreciation 8,400 Rent 2,000 Administrative expenses 1,849 Total expense 27,427 Net operating income $25,313
Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) S Answer is complete but not entirely correct. Lavage Rapide Ravenue and Spending Variances For the Month Ended August 31 Revenue $ 2,100 F Expenses Cleaning supplies 500 IU Electricity 30 ® F Maintenance 360° U Wages and salaries 360 ⓇU Depreciation 0 None Rent 0 0 None Administrative expenses 100F Total expense 1,170 @ U Net operating income 5 930F olololo
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