Cost per per Month Car Washed Cleaning supplies Electricity Maintenance Wages an
ID: 2520547 • Letter: C
Question
Cost per per Month Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.80 $0.08 $0.30 $0.40 $1,300 $4,200 $8,500 $2,200 $1,600 $0.02 For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.70 per car washed The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,600 59,050 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 7,300 1,950 2,790 7,960 8,500 2,400 1,670 32,570 26,480 Total expense Net operating income Required Calculate the companv's revenue and spendina variances for Auaust. (Indicate the effect of each variance bv selectina "F" forExplanation / Answer
Revenue and spending variance :
Revenue 1430 F expense Cleaning supplies 420 U Electricity 38 F Maintenance 210 U Wages and salaries 320 U Depreciation None Rent 200 U Administrative expense 102 F Total expense 1010 U Net operating income 420 F