Question

Check my work 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 Coat Cost per Car Washed $0.60 $0.08 $0.25 S0.20 per Month cleaning supplies tlectricity Maintenance nts $1,300 Mages and salarios Depreciation Rent Adsinistrative expenaes $4,400 s8,400 $2,100 $1,700 eBook $0.03 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 $6.40 per car washed Print The actual operating results for August appear below References Lavage Rapide Incone Statement Tor the Month Ended August 31 Aetual eare washed 8,200 Revenae Expenses Cleaning aupplies nlectrieity Maintenance Wages and salaries Depreeiation Rest Adeinistrative expenaes total expenae 53,940 s,360 1,910 2.265 6,380 .400 2,300 ,843 2,466 25,474 Net operating incone Required: Mc Graw 00
Any help would be great!

Answer 1

Solution:

Lavage Rapide
Revenue and sepnding variances
For the month ended August 31
Particulars	Actual results	Revenue and spending variances		Flexible Budget
Car Washed	8200			8200
Revenue	$53,940.00	$1,460.00	F	$52,480.00
Expenses:
Cleaning Supplies	$5,360.00	$440.00	U	$4,920.00
Electricity	$1,918.00	$38.00	F	$1,956.00
Maintenance	$2,265.00	$215.00	U	$2,050.00
Wages and Salaries	$6,380.00	$340.00	U	$6,040.00
Depreciation	$8,400.00	$0.00	None	$8,400.00
Rent	$2,300.00	$200.00	U	$2,100.00
Administrative expenses	$1,843.00	$103.00	F	$1,946.00
Total Expenses	$28,466.00	$1,054.00	U	$27,412.00
Net Operating Income	$25,474.00	$406.00	F	$25,068.00