Lavage rapide is a canadian company that owns and operates

Reference no: EM13576725

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.

Reference no: EM13576725

Questions Cloud

A sample of 100 customers of montana gas and electric : a sample of 100 customers of montana gas and electric resulted in the following frequency distribution of monthly

Flag financial uses straight-line depreciation for its : flag financial uses straight-line depreciation for its equipment with an estimated useful life of 10 years and zero

Refer to fireworks city during the year the company sold : information for 2013 and 2012 is presented below for this company which uses the straight-line depreciation method.

Consider a binomial experiment with n 10 and p 010 use : consider a binomial experiment with n 10 and p 0.10. use the binomial tables appendix b to answer parts a through

Lavage rapide is a canadian company that owns and operates : lavage rapide is a canadian company that owns and operates a large automatic carwash facility near montreal. the

South pole novelties sells ice cream bars from a kiosk near : south pole novelties sells ice cream bars from a kiosk near campus. fixed costs are 260 per week and the variable cost

If you pick a card at random from a well-shuffled deck what : if you pick a card at random from a well-shuffled deck what is the probability that you get a spade or a

Burr company has identified seven activities as part of its : burr company has identified seven activities as part of its manufacturing process and chosen corresponding activity

An instant lottery scratch off game offers a 004 : an instant lottery scratch off game offers a 0.04 probability of winning on any one play. plays are independent of

User Account

All Pages