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 per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,500 $ 0.06 Maintenance $ 0.15 Wages and salaries $ 4,800 $ 0.30 Depreciation $ 8,100 Rent $ 2,100 Administrative expenses $ 1,700 $ 0.04 For example, electricity costs should be $1,500 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The company actually washed 8,200 cars in August.
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 per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,500 $ 0.06 Maintenance $ 0.15 Wages and salaries $ 4,800 $ 0.30 Depreciation $ 8,100 Rent $ 2,100 Administrative expenses $ 1,700 $ 0.04 For example, electricity costs should be $1,500 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The company actually washed 8,200 cars in August.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 3E
Related questions
Question
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 per Month | Cost per Car Washed | ||
|---|---|---|---|
| Cleaning supplies | $ 0.50 | ||
| Electricity | $ 1,500 | $ 0.06 | |
| Maintenance | $ 0.15 | ||
| Wages and salaries | $ 4,800 | $ 0.30 | |
| $ 8,100 | |||
| Rent | $ 2,100 | ||
| Administrative expenses | $ 1,700 | $ 0.04 |
For example, electricity costs should be $1,500 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The company actually washed 8,200 cars in August.
Required:
Calculate the company's activity variances for August.
Transcribed Image Text:Revenue
Expenses:
Lavage Rapide
Activity Variances
For the Month Ended August 31
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning