User Account

All Pages

Compute the company revenue and spending variances

Assignment Help Financial Accounting
Reference no: EM13508710

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys costs:


 Fixed Cost
per Month
Cost per
Car Washed
Cleaning supplies


$ 0.70
Electricity $ 1,400
$ 0.10
Maintenance


$ 0.30
Wages and salaries $ 4,700
$ 0.40
Depreciation $ 8,300


Rent $ 2,100


Administrative expenses $ 1,800
$ 0.05

For example, electricity costs are $1,400 per month plus $0.10 per car washed. The company expects to wash 8,000 cars in October and to collect an average of $5.90 per car washed.

The actual operating results for October appear below:


Auto Lavage
Income Statement
For the Month Ended October 31
Actual cars washed
8,100
Revenue $ 49,300

Expenses:
Cleaning supplies
6,100
Electricity
2,170
Maintenance
2,640
Wages and salaries
8,260
Depreciation
8,300
Rent
2,300
Administrative expenses
2,100


Total expense
31,870

Net operating income $ 17,430

Required:

Compute the company's revenue and spending variances for October. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "tiny_mce_markerquot; sign in your response.)


Auto Lavage
Revenue and Spending Variances
For the Month Ended October 31
Revenue $ (Click to select) F U None


Expenses:

Cleaning supplies
(Click to select) F U None
Electricity
(Click to select) F U None
Maintenance
(Click to select) F U None
Wages and salaries
(Click to select) F U None
Depreciation
(Click to select) F U None
Rent
(Click to select) F U None
Administrative expenses
(Click to select) F U None


Total expense
(Click to select) F U None


Net operating income $ (Click to select) F U None



Reference no: EM13508710

Questions Cloud

Allocate joint production costs to each product : Bubble Corporation manufactures two products, I and II, from a joint process. A single production costs $4,000 and results in 100 units of I and 400 units of II.
Compute the force exerted by the road on the car : A 1000 kg sports car of mass accelerates from rest to 20 m/s in 6.6 s. what is the force exerted by the road on the car
What was your total real return on investment : What was your total real return on investment?
What tests could you perform to detect fraudulent activities : As the auditor, what 3 tests could you perform to detect fraudulent activities in the cash account?
Compute the company revenue and spending variances : Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys costs.
Find the distance of your lab partner : Suppose your lab partner has a height L of 170 cm (5 ft, 7 in) and a weight w of 680 N (153 lb). find the distance of your lab partner's center of gravity from the left end of the board
Comparison of current results with historical results : Which do you think provides a more valid measure of how a company is doing, comparison of current results with historical results or comparison of current results with the current results of another company?
Determine the speed of an orbiter in a circular orbit : Find the speed of an orbiter in a circular orbit that is just above the surface of a planet, given that the orbiter's acceleration is equal to the planet's gravitational acceleration of 2.13 m/s2
Elements in the balance sheet of the banks : what are current assets elements in the balance sheet of the banks?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd