Tarrant County College, Fort Worth

ACCT MISC

Exercise 9-13 Revenue and Spending Variances (LO9-3]
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: nts Fixed Cost per Month eBook $1,200 Cleaning
supplies Electricity Maintenance Wages and salaries
Depreciation Rent Administrative expenses Cost per Car
Washed $8.50 $0.1e $0.20 $0.30 $4.800 $8,200 $2,000
$1,700 $0.01 ferences For example, electricity costs are
$1,200 per month plus $0.10 per car washed. The company
expects to wash 8,400 cars in August and to collect an
average of $6.00 per car washed. The actual operating results
for August are as follows: Lavage Rapide Income Statement
For the Month Ended August 31 Actual cars washed 8,500 $
52,580 Revenue Expenses: Cleaning supplies Electricity
Maintenance Wages and salaries Depreciation Rent
Administrative expenses Total expense Net operating income
4,700 2,010 1,920 7.680 8, 20e 2,200 1,684 28,394 $ 24,106
Required: Calculate the company's revenue and spending
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.) Print ferences Lavage Rapide Revenue and
Spending Variances For the Month Ended August 31 Revenue
Expenses: Cleaning supplies Electricity Maintenance Wages
and salaries Depreciation Rent Administrative expenses Total
expense Net operating income