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: Cleaning supplies Electricity Maintenance Rent Wages and salaries. Depreciation Administrative expenses For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.50 per car washed. Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed Revenue Expenses: Fixed Cost per Month $ 1,200 Required: Prepare the company's flexible budget for August. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.50 $0.09 $0.20 $ 0.20 $4,400 $ 8,000 $ 1,800 $ 1,600 $ 0.04
Q: In its 2024 Income statement, what amount should Mifflin Include as a foreign exchange gain or loss…
A: Net gain / loss = Borrowed amount - Year end amountBorrowed amount on borrowing date (July 1, 2023)…
Q: Suppose you are a CPA hired to represent a client who is currently under examination by the IRS. The…
A: The objective of this question is to develop a research-based and ethical strategy for the client to…
Q: The following direct materials and direct labor data pertain to the operations of Sunland Company…
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: Et labor mble manufacturing overhead d manufacturing product cost overhead 20.30 2.50 10.40 $45.90…
A: Relevant cost means such costs that is relevant if a particular offer is accepted. This cost is the…
Q: After reading Catch Engineering Partnership v. Mai, 2023 ABKB 279, the court assessed Catch's 2021…
A: The damages that are not taxable are exemplary damages, actual damages, moral damages, attorney's…
Q: value. The expected after-tax cash flows associated with the project follow: Year Cash Revenues Cash…
A: Payback period refers to the time period usually in years at which the initial capital outlay would…
Q: Winter Sports manufactures snowboards. Its cost of making 1,800 bindings is as follows: (Click the…
A: After performing a cost-benefit analysis, a make-or-buy decision is reached on whether to produce a…
Q: At December 31 Assets Cash Comparative Balance Sheets Accounts receivable, net Inventory Prepaid…
A: The cash flow statement is used to record the various activities for the inflow and outflow of cash…
Q: Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following…
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: Golden Gate Construction Associates, a real estate developer and building contractor in San…
A: We need to find out economic value added EVA for each of Golden Gate Construction Associates…
Q: Concord Corporation makes backpacks, with a specialty line for baseball players. This backpack has a…
A: Gross margin is the excess amount of total revenue over the cost of goods sold.Cost of goods sold…
Q: Prepare a cash budget for Khloe Company for the month of November.
A: Cash budget-A cash budget is an estimation of the cash flow of a company over a particular period of…
Q: A mortgage agent has been charged by FSRA of providing false or misleading information to a client.…
A: The term "fraud prevention" describes the collection of tactics, policies, and procedures used by…
Q: 1 The following balance sheet information is provided for Greene Company for Year 2: Assets Cash…
A: The objective of the question is to calculate the quick ratio (also known as the acid-test ratio)…
Q: Oriole Company purchases equipment on January 1, Year 1. at a cost of $588,000. The asset is…
A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…
Q: Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It…
A: A division of a company that produces its own income and develops its own product line or products…
Q: A company's fixed budget (based on 8,000 units) follows. Compute total fixed costs. Fixed Budget…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: Partial-Year Depreciation Equipment acquired at a cost of $105,000 has an estimated residual value…
A: Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…
Q: Beck Company had the following accounts and balances at the end of the year. What is net income or…
A: Profit and lossProfit :Profit can be defined as the extra amount we earn after selling our product…
Q: Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment…
A: Adjusted Gross Income (AGI) is considered as gross income less income adjustments. Salaries,…
Q: Jackson has received a request for a special order of 9,000 units of product "Michael" for $46.35…
A: In management accounting, a special order refers to a one-time, non-recurring sales opportunity that…
Q: Almaden Hardware Store sells two product categories, tools and paint products. Information…
A: Net realizable value means the amount that could be received after deducting all incidental expenses…
Q: Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents…
A: The break-even point in units refers to the minimum number of units required to be sold to cover the…
Q: Home Properties is developing a subdivision that includes 470 home lots. The 170 lots in the Canyon…
A: COST ALLOCATIONWhen item of cost are Identifiable directly with some products or departments such…
Q: Prepare the consolidated statements workpaper for the year ended December 31, 2016. (List items that…
A: Consolidation work papers are integral to the financial reporting process, particularly for…
Q: As of June 30, Year 2, the bank statement showed an ending balance of $18.744. The unadjusted Cash…
A: A bank reconciliation statement is a summary of cash balance as per Bank and as per Books that…
Q: Cooper Industries wants to replace two small delivery trucks with one larger delivery truck. The old…
A: Return on Investment is an analysis that shows the earning on the investment made by the company. An…
Q: A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie…
A: Lets understand the basics.There are two type of analysis are generally made which are,(1) Verticle…
Q: he following information is taken from the accounting records of Rapid Runner Incorporated for the…
A: Cost Of Goods Sold = Beginning Inventory + Net Purchases - Closing InventoryNet Purchases = Gross…
Q: Zebra Company purchases Glow Inc. for $13,985,000 cash on January 1, 2023. The book value of Glow…
A: Goodwill is the premium that is paid during the acquisition of a business.If a business is purchased…
Q: Inspecting cleanliness of rooms Processing lost customer reservations Reworking incorrectly prepared…
A: The quality report is the statement prepared by the management that determines various costs with…
Q: Assets Cash Accounts receivable Inventory Year 2 $ 4,000 15,000 35,000 Assuming that net credit…
A: The objective of the question is to calculate the accounts receivable turnover for Year 2. The…
Q: Metlock Company uses a periodic inventory system. For April, when the company sold 650 units, the…
A: FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sell…
Q: Mar 2 June 12 July 11 Nov. 28 Issued 4,200 shares of $5 par value common stock to attorneys in…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: Volata Company began operations on January 1, 2019. In the second quarter of 2020, it adopted the…
A: Deciding how much money to put into a company's inventory is known as inventory valuation. In order…
Q: Accounting ABC Corporation issued $100,000 of 5% bonds on January 1, 2023, with interest payable…
A: Interest expense refers to the cost of borrowing money over a specific period. It represents the…
Q: E9-1 (Static) Calculating Unknown Values for Direct Materials, Direct Labor Variances [LO 9-3, 9-4)…
A: Variances in production are recorded due to a difference between the budgeted values for expenses…
Q: Firm X purchased $31,000 worth of inventory when they opened for business, adding to the $22,000…
A: Cost of goods sold is the total cost of units sold during the period. It is calculated as beginning…
Q: Required information Use the following information for the Problems below: The following cata…
A: Return on investment is a measure used to evaluate investment performance and profitability. It…
Q: Rundle Medical Clinic has budgeted the following cash flows. January $ 112,000 Cash receipts Cash…
A: >Cash Budget is prepared as part of budgeting process.>It is usually the final budget before…
Q: Prepare a CVP income statement for Ivanhoe Industries for the month of May. (Round per unit answers…
A: A CVP income statement is an income statement in which the details about the contribution margin per…
Q: Financial statements - Income statement for 20X4 and Comparative Balance Sheet for diving equipment…
A: The question is related to Ratio Analysis. The Equity is calculated with the help of following…
Q: Given the following information, determine the activity rate (rounded to the nearest cent) for…
A: The objective of the question is to calculate the activity rate for setups. The activity rate is…
Q: Supper Accountants Inc plans to sell a bond to finance its plant. The face value of the bond is…
A: Bonds payable is one of liability being incurred in business. This is a promise to pay amount later.…
Q: Carla Vista Company estimates that annual manufacturing overhead costs will be $708,000. Estimated…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The…
Q: Bramble Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for…
A: Variance analysis is a financial and quantitative analysis used by businesses to identify the…
Q: Costner produces two product lines. Prices/costs per unit follow.…
A: Contribution Margin per Hour is the amount of revenue remaining after covering variable costs,…
Q: ACC 201 TEXT HW CH13a EX13-1B Complete the following table by indicating whether a debit or credit…
A: DebitA debit is an accounting entry made on the account's left side. Debits are used in double-entry…
Q: Required information [The following information applies to the questions displayed below] Shadee…
A: A budgeted income statement refers to the calculation of net income expected in the coming year. The…
Q: Balance sheet The account balances of A-One Travel Service for the year ended August 31, 20Y6,…
A: BALANCE SHEETThe balance sheet is one of the important financial statements of the company. Balance…
Step by step
Solved in 3 steps with 2 images
- 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: For example, electricity costs should be $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 company actually washed 8,800 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.)Dog 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 MonthCost per Car WashedCleaning supplies $ 0.80Electricity$ 1,200$ 0.15Maintenance $ 0.20Wages and salaries$ 5,000$ 0.30Depreciation$ 6,000 Rent$ 8,000 Administrative expenses$ 4,000$ 0.10For example, electricity costs should be $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 company actually washed 8,800 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.)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: Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Administrative expenses For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.60 per car washed. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Required: Prepare the company's flexible budget for August. Cleaning supplies Electricity Maintenance Fixed Cost per Month $ 1,400 Wages and salaries Depreciation Rent Cost per Car Washed $ 0.60 $ 0.06 $ 0.25 $ 0.20 $ 4,700 $ 8,500 $ 1,900 $ 1,300 $ 0.05 с
- 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)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)Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Category Per Unit Dollar Amount Price $60,000 Cost of goods sold Gross profit 28,000 32,000 In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: Budgeted Activity Cost Activity Base $51,500 Number of service requests Activity Customer service Project bidding Engineering support 64,000 Number of bids 110,500 Number of customer design changes Total costs 226,000…
- King's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales of a given type of appliance and sales support. In July, the following costs were recorded for refrigerators: Professional sales staff commissions Amortization on office space Selling supplies Office staff expenses Customer relations Training expenses Utilities $84,000 4,000 6,400 24,800 8,600 6,000 1,400 Required: a. Which of the costs will be subject to direct cost tracing? b. What is the total cost for refrigerators? c. What is the total cost of the Sales Support for refrigerators?Easton Company makes and sells scooters. Easton incurred the following costs in its most recent fiscal year: Cost Items Appearing on the Income Statement Materials cost ($10 per unit) Company president's salary Depreciation on manufacturing equipment Salaries of administrative personnel Labor cost ($4 per unit) Advertising costs (150,000 per year) Shipping and handling ($500 per year) Research and development costs Real estate taxes on factory Inspection costs Easton can currently purchase the scooters it makes from Weston Company. If the company purchases the scooters, Easton would still continue to use its own logo, sales staff, and advertising programs. If Easton outsources the scooters to Weston, which of the following costs would be relevant to the outsourcing decision? Multiple Choice X Materials cost Shipping and handling Inspection costs All of these answers are correct.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)
- [The following information applies to the questions displayed below.] Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$5,000 4. Office accounting salaries-$35,000 5. Drum stands-$26,000 6. Rent cost of office for accountants-$10,000 7. Office management salaries-$125,000 8. Annual fee for factory maintenance-$10,000 9. Sales commissions-$15,000 10. Factory machinery depreciation, straight-line-$40,000Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $510 each. Costs 1. Plastic for casing—$17,000 2. Wages of assembly workers—$86,000 3. Property taxes on factory—$6,000 4. Accounting staff salaries—$36,000 5. Drum stands (1,000 stands purchased)—$31,000 6. Rent cost of equipment for sales staff—$48,000 7. Upper management salaries—$170,000 8. Annual flat fee for factory maintenance service—$13,000 9. Sales commissions—$20 per unit 10. Machinery depreciation, straight-line—$45,000 2. Compute the manufacturing cost per drum set. TrueBeat Calculation of Manufacturing Cost per Drum Set Item Total cost Per unit cost Variable production costs Total variable production costs Fixed production costs Total fixed production costs Total production costListed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $510 each. Costs 1. Plastic for casing—$17,000 2. Wages of assembly workers—$86,000 3. Property taxes on factory—$6,000 4. Accounting staff salaries—$36,000 5. Drum stands (1,000 stands purchased)—$31,000 6. Rent cost of equipment for sales staff—$48,000 7. Upper management salaries—$170,000 8. Annual flat fee for factory maintenance service—$13,000 9. Sales commissions—$20 per unit 10. Machinery depreciation, straight-line—$45,000 Required:1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.) Cost by Behavior Cost by Function Costs Variable Fixed Product Period 1. Plastic for casing $17,000 $17,000 2. Wages of assembly workers 3. Property taxes on factory 4. Accounting…