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 Cost Car Washed per Month $ 0.40 $ 0.08 $ 0.15 $ 0.30 Cleaning supplies Electricity $1,100 Maintenance $ 4,300 $8,400 Wages and salaries Depreciation $1,900 $1,400 Rent Administrative expenses $ 0.01 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.00 per car washed.
Q: Please Help
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The difference between being an expense's real and expected (or intended) amount is referred to as…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The budget is prepared for estimating the revenue and expenditure. It is used for planning and…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The revenue and spending variance is the difference between actual results and flexible budget data…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Fixed costs do not change with the level of activity. Expenses will be calculated as follows:…
Q: Additional information as of April 30, 2016: 1. The building rental fee that still has to be paid is…
A: Here discuss about the adjustment entries which are related with the manufacturing process an total…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Planning budget is a budget prepared for planned level of activity. Variable cost = Activity level x…
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Q: $ 0.70 Electricity $ 1,400 $ 0.09 Maintenance $ 0.30 Wages and salaries $ 4,400 $…
A: A flexible budget is a budget that includes all the flexibility and change in the output. In…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Activity Variance = ( Actual Units - Budgeted Units ) * Price Net Operating Income = Revenue -…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: A flexible budget is that budget which includes all the flexibility and change in the output. In…
Q: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $…
A: Flexible budget is a type of budget which adjusts to the changing level of activities.
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Revenue = Actual cars washed x price per car washed = 840 cars x $6.00 per car = $50400
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A: SOLUTION- OPERATING COST- THEY ARE ONGOING EXPENSES INCURRED FROM THE NORMAL DAY TO DAY OF RUNNING…
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A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15…
A: Solution: Lavage Rapide Revenue and spending Variances For the month ended August 31…
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A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…
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A: The flexible budget is prepared to estimate the cost for every production level.
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Net operating income = Revenue - Total expense where, Total expense = Fixed expenses + Variable…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Net income- The balance left over after subtracting the cost of products sold and expenses from a…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Flexible Budget: Flexible budget is the report that adjust as per the changes in the activity and…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Revenue = Budgeted car washed x average price per car washed = 8000 x $6.10 = $48800
Q: help
A: Planning budget of income statement shows the projected revenues and expenses based on the estimated…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: ANSWER For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Budget is a statement showing the expected values of various line items in an organization. Budgets…
Q: Consider the following cost items:1. Salaries of players on the Boston Red Sox.2. Year-end completed…
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Q: Miracle Car Wash located in Nashville, Tennessee has been providing interior and exterior car washes…
A: The budget is prepared to record variable and fixed cost at different level of production.
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The variance is the difference between standard and actual production data of the business.
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Every spending variation should be compared to the assumptions that were utilized to create the…
Q: please help
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Flexible budget presents expected cost for actual number of units. Flexible budget can be modified…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: What is meant by budgeting? It is the method of forecasting the future inflows and outflows of an…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Net operating Income= Revenues- Total expense
Q: Below are listed various costs that are found in organizations.1. Hamburger buns in a Wendy’s…
A: Fixed and Variable Costs in Manufacturing: Variable costs refer to the costs of manufacturing that…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Revenue = No. of Actual cars washed x price per car washed = 8000 x 6.30 = $50400
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: A variance is a difference between being an actual measured output and a basis, such as a budgeted…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility…
A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…
Q: screen shot included
A: An activity variance is a variance between the flexible budget numbers and planning budget numbers A…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Revenue and spending variances are the differences between the actual and the budgeted figures of…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Variance Analysis helps an organization to understand the variations in the actual results of…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Budget is of two types on the basis of flexibility: Fixed budget Flexible budget Fixed budget is…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Solution: Flexible budget is the budget which represents budgeted cost based on actual level of…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Variance is considered as the difference between budgeted value and actual results. The management…
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A: Solution 1: First stage allocation of cost to activity cost pools Particulars…
Q: help
A: An activity variance is calculated by measuring the difference between the budget prepared for the…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
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- Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility nearMontreal. The following table provides data concerning the company’s costs:Fixed Cost Cost per Carper Month WashedCleaning supplies ...................... $0.80Electricity .................................. $1,200 $0.15Maintenance ............................ $0.20Wages and salaries ................. $5,000 $0.30Depreciation .............................. $6,000Rent .......................................... $8,000Administrative expenses .......... $4,000 $0.10For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects towash 9,000 cars in August and to collect an average of $4.90 per car washed.Required:Prepare the company’s planning budget for August.
- Jake's Roof Repair provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour Wages and salaries Parts and supplies Equipment depreciation $ 21,200 $ 15.00 $ 7.10 $ 2,770 $ 0.45 Truck operating expenses Rent $ 5,720 $ 1.60 $ 4,640 $ 3,880 $ 0.50 Administrative expenses For example, wages and salaries should be $21,200 plus $15.00 per repair-hour. The company expected to work 2,800 repair-hours in May but actually worked 2,700 repair-hours. The company expects its sales to be $54.00 per repair-hour. Required: Compute the company's activity variances for May. Note: 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. Revenue Expenses: Jake's Roof Repair Activity Variances For the Month Ended May 31 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expenses Net…Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. A. Wood used to produce desks ($125.00 per desk) B. Production labor used to produce desks ($15 per hour) C. Production supervisor salary ($45,000 per year) D. Depreciation on factory equipment ($60,000 per year) E. Selling and administrative expenses ($45,000 per year) F. Rent on corporate office ($44,000 per year) G. Nails, glue, and other materials required to produce desks (varies per desk) H. Utilities expenses for production facility I. Sales staff commission (5% of gross sales)Understanding the assignment manufactures computer chips. It incurs the following costs in manufacturing chips and in operating the sts is mpora. sider a company that company. 1. Plastic board used to mount the chip, $3.50 each. 2. Assembly worker pay of $15 per hour to attach chips to plastic board. 3. Salary for factory maintenance workers who maintain factory equipment. 4. Factory supervisor pay of $55,000 per year to supervise employees. 5. Salary paid to the chief financial officer, $95,000. 6. Advertising costs of $7,800 paid to promote ploducts. 7. Salespersons' commissions of S0.50 for each assembled chip sold. 8. Management has the option to rent the manufacturing plant to six local hospitals to store medical records instead of producing and assembling chips. 9. Real estate taxes paid on the factory, $14,500 Classify cach cost in the following table according to the categories listed in the table header. A cost can be classified under more than one category. For example, the…
- How would each of the following costs be classified if units produced is the activity base? a. Salary of factory supervisor ($120,000 per year) b. Straight-line depreciation of plant and equipment c. Property rent of $11,500 per month on plant and equipmentI b) Refer to the following data: Direct material used $180 000 Advertising costs $ 5 000 Indirect labour $ 8 000 Rent on corporate office $ 20 000 Depreciation on factory equipment $ 60 000 Direct labour $ 30 000 Factory cleaners wages $ 20 000 Indirect materials $ 35 000 Required (show your workings for each question): Determine each of the following costs: (list the costs under each cost category when calculating the answer). Period costsSheddon Industries produces two products. The products' identified costs are as follows: Product A Product B Direct materials $20,000 $15,000 Direct labor $12,000 $24,000 The company's overhead costs of $108,000 are allocated based on direct labor cost. Assume 4,000 units of product A and 5,000 units of Product B are produced. What is the cost per unit for product B? (Do not round your intermediate calculations.)
- Scaffolder Ltd. is a manufacturing company making construction items. The production process is divided into two production departments, Assembly and Finishing. There is one service department, the Stores department, which is used by both the Assembly and the Finishing departments. The relevant information for the year ahead is as follows: Indirect Costs for All Three Departments in Total: Item Total £ Maintenance 40,000 Rent 80,000 Depreciation 500,000 TOTAL 620,000 The following information is available about each department: Item Assembly (£) Finishing (£) Stores (£) Floor Space (sq meters) 40,000 45,000 15,000 Value of machinery (£) 160,000 20,000 20,000 Maintenance hours 3,000 2,000 Stores requisitions 2,000 3,000 After allocating the indirect costs to the Assembly, Finishing and Stores departments using a suitable method for each department and reallocating the service department costs over production departments, which are the total costs for each department? O a. Total costs…Jumbo Co. sells a special toy product in Hong Kong. The cost information for the current year is as follows: Direct materials at $12 per poundDirect labour at $10 per hourVariable manufacturing overheadsVariable selling and administrative overheads Fixed manufacturing overheads Fixed selling and administrative overheads 2 pounds per unit 4 hours per unit$5 per direct labour hour $18 per unit $2,000,000 per year $1,000,000 per year A supplier selling production machines has offered Jumbo Co. a new model of the machine which can improve productivity by reducing one hour of labour time per unit. The renting cost of this new machine will incur an extra cost of $45,000 per month. Currently the annual sales quantity is 60,000 units and the selling price is $300 each. Your manager is seeking your advice for the replacement of the machine. Required: (a) Calculate the change in Net Profit resulting from the replacement of the machine. Indicate whether it is an Increase or a…Scaffolder Ltd. is a manufacturing company making construction items. The production process is divided into two production departments, Assembly and Finishing. There is one service department, the Stores department, which is used by both the Assembly and the Finishing departments. The relevant information for the year ahead is as follows: Indirect Costs for All Three Departments in Total: Item Total £ Maintenance 40,000 Rent 80,000 Depreciation 500,000 TOTAL 620,000 The following information is available about each department: Item Assembly (£) Finishing (£) Stores (£) Floor Space (sq meters) 40,000 45,000 15,000 Value of machinery (£) 160,000 20,000 20,000 Maintenance hours 3,000 2,000 Stores requisitions 2,000 3,000 After allocating the indirect costs to the Assembly, Finishing and Stores departments using a suitable method for each department and reallocating the service department costs…