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Category > Accounting Posted 11 Aug 2017 My Price 11.00

Lavage Rapide

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's 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 are $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 appears below.
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 expense 39,940
 
Net operating income 3,140
 

 

Required:

Prepare a report showing the company's activity variances for August.

 

Answers

Maurice Tutor
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Status NEW Posted 11 Aug 2017 05:08 PM My Price 11.00

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