Question
In: Accounting
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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 |
Cost per Car Washed |
||||||
| Cleaning supplies | $ | 0.70 | |||||
| Electricity | $ | 1,200 | $ | 0.08 | |||
| Maintenance | $ | 0.25 | |||||
| Wages and salaries | $ | 4,200 | $ | 0.30 | |||
| Depreciation | $ | 8,400 | |||||
| Rent | $ | 2,100 | |||||
| Administrative expenses | $ | 1,400 | $ | 0.04 | |||
For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed. The company actually washed 8,100 cars in August.
Required:
Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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
Cost per
Car Washed
Cleaning supplies
$
0.40
Electricity
$
1,500
$
0.08
Maintenance
$
0.10
Wages and salaries
$
4,800
$
0.30
Depreciation
$
8,300
Rent
$
1,900
Administrative expenses
$
1,700
$
0.01
For example, electricity costs are $1,500 per month plus $0.08
per car washed. The...
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
Lavage Rapide is a Canadian company that owns and operates a
large automatic car wash facility near Montreal. The following
table provides estimates concerning the company’s costs:
Fixed Cost
per Month
Cost per
Car Washed
Cleaning supplies
$
0.70
Electricity
$
1,400
$
0.08
Maintenance
$
0.10
Wages and salaries
$
4,100
$
0.40
Depreciation
$
8,300
Rent
$
2,200
Administrative expenses
$
1,700
$
0.05
For example, electricity costs should be $1,400 per month plus
$0.08 per car washed....
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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
Cost per
Car Washed
Cleaning supplies
$
0.70
Electricity
$
1,200
$
0.09
Maintenance
$
0.20
Wages and salaries
$
4,500
$
0.20
Depreciation
$
8,000
Rent
$
2,200
Administrative expenses
$
1,600
$
0.01
For example, electricity costs are $1,200 per month plus $0.09
per car washed. The...
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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
Cost per
Car Washed
Cleaning supplies
$
0.60
Electricity
$
1,500
$
0.07
Maintenance
$
0.20
Wages and salaries
$
4,400
$
0.20
Depreciation
$
8,300
Rent
$
2,100
Administrative expenses
$
1,300
$
0.05
For example, electricity costs are $1,500 per month plus $0.07
per car washed. The...
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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
Cost per
Car Washed
Cleaning supplies
$
0.50
Electricity
$
1,400
$
0.08
Maintenance
$
0.15
Wages and salaries
$
4,500
$
0.30
Depreciation
$
8,400
Rent
$
1,800
Administrative expenses
$
1,700
$
0.01
For example, electricity costs are $1,400 per month plus $0.08
per car washed. The...
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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
Cost per
Car Washed
Cleaning
supplies
$
0.60
Electricity
$
1,100
$
0.06
Maintenance
$
0.30
Wages and
salaries
$
4,300
$
0.30
Depreciation
$
8,200
Rent
$
1,800
Administrative
expenses
$
1,600
$
0.01
For example,
electricity costs are $1,100 per month plus $0.06 per car washed.
The...
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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
Cost per
Car Washed
Cleaning supplies
$
0.60
Electricity
$
1,300
$
0.09
Maintenance
$
0.30
Wages and salaries
$
4,500
$
0.30
Depreciation
$
8,400
Rent
$
2,000
Administrative expenses
$
1,300
$
0.02
For example, electricity costs are $1,300 per month plus $0.09
per car washed. The...
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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
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...
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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
Cost per
Car Washed
Cleaning
supplies
$
0.40
Electricity
$
1,300
$
0.10
Maintenance
$
0.25
Wages and
salaries
$
5,000
$
0.40
Depreciation
$
8,200
Rent
$
1,900
Administrative
expenses
$
1,600
$
0.03
For example,
electricity costs are $1,300 per month plus $0.10 per car washed.
The...
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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
Cost per
Car Washed
Cleaning supplies
$
0.60
Electricity
$
1,100
$
0.05
Maintenance
$
0.15
Wages and salaries
$
4,700
$
0.20
Depreciation
$
8,300
Rent
$
2,000
Administrative expenses
$
1,500
$
0.03
For example, electricity costs are $1,100 per month plus $0.05
per car washed. The...
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