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Exercise 2.22 (Part Level Submission) Toonie Car Washing Company reports the following costs and account analysis classification for 14,400 car washing for the year ended December 31, 2016: Account Direct materials Direct labour Office support Utilities Rent Depreciation Classification 100% variable 100% variable 30% variable 20% variable 0% variable 0% variable Amount $26,000 $38,000 $12,000 $40,000 $42,000 $32,600 v (a) What is the variable cost per car wash? What is the total fixed cost for 14,400 car washing? Prepare the cost equation. (Round variable cost per car wash to 2 decimal places, e.g. 15.25 and other answers to O decimal places, e.g. 1,575.) Variable cost per car wash = per car wash Total fixed cost Cost Equation: Total Cost = $ + $ x number of car washes Question 2 What will be the total costs if Carla Vista has 16,800 car washing in 2017 (assuming no cost increases)? (Round answer to o decimal places, e.g 1,725.) Question 3 Assume that Wildhorse anticipates no change to the number of car washes from 2016 but anticipates the following changes in cost in 2018: Direct materials to increase by 3%. Direct labour to increase by 4%. Rent to increase by 4%. Depreciation to increase by 5%. What is the variable cost per car wash? What is the total cost for 18,000 car washing? Prepare the cost equation. (Round intermediate calculation and variable cost per car wash to 2 decimal places, e.g. 15.25 and other answers to O decimal places, e.g. 5,725.)

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