Exercise 9-8 Flexible Budget (LO9-1] Lavage Rapide is a Canadian company that owns and operates...
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Exercise 9-8 Flexible Budget (LO9-1] 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 Month Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000 $ 0.10 For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August and collected an average of $4.90 per car washed. Required: Prepare the company's flexible budget for August. X Answer is complete but not entirely correct. Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed 6,000 Revenue $ 43,120 Expenses: Cleaning supplies Electricity 7,040 2,520 Maintenance 1,760 7,640 Wages and salaries Depreciation Rent 6,000 8,000 Administrative expenses Total expense 4,880 37,840 5,280 Net operating income $
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