Question

Exercise 9-14 Prepare a Flexible Budget Performance Report (LO9-4) 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 $1,300 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.50 $0.08 $0.25 $0.30 $4,300 $8,200 $1,900 $1,400 $0.02 For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,200 $ 54,750 Revenue Expenses: Cleaning supplies Electricity Maintenance 4,550 1,918 2,265

Answer 1

Solution:

Lavage Rapide Flexible Budget Performance Report For the month ended August 31 Revenue and Actual results Flexible Budget Activity Variances Planning Budget spending variances 8200 8200 8100 Particulars Car Washed 10 $54,750.00 $1,450.00 F $53,300.00 $650.00 F $52,650.00 12 13 14 15 Revenue Expenses: Cleaning Supplies Electricity Maintenance Wages and Salaries Depreciation Rent Administrative expenses Total Expenses | $4,550.00 $1,918.00 $2,265.00 $7,090.00 $8,200.00 $2,100.00 $1,462.00 $27,585.00 $450.000 $38.00 F $215.000 $330.000 $0.00 None $200.000 $102.00 F $1,055.00u $4,100.00 $1,956.00 $2,050.00 $6,760.00 $8,200.00 $1,900.00 $1,564.00 $26,530.00 $50.00u $8.00 u $25.000 $30.000 $0.00 None $0.00 None $2.000 $115.00 U $4,050.00 $1,948.00 $2,025.00 $6,730.00 $8,200.00 $1,900.00 $1,562.00 $26,415.00 16 11 18 19 20 Net Operating Income $27,165.00 $395.00 F $26,770.00 $535.00 F $26,235.00 34 3) Sheet786 Sheet81 Sheet82 Sheet153 (23) She