Lavado Rapido is a Mexican company that owns and operates a large automatic car wash...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Lavado Rapido is a Mexican company that owns and operates a large automatic car wash facility near Mexico City. The following table provides data concerning the companys costs:
[Fixed Cost per Month] [Cost per Car Washed]
Cleaning supplies $1.10
Electricity $1,500 $0.20
Maintenance $0.35
Wages and salaries $6,500 $0.80
Depreciation $6,000
Rent $9,500
Administrative expenses $3,500 $0.20
The company actually washed 10,000 cars in October and expected to collect an average of $5.50 per car washed. The company reported the following actual results.
Actual Results
Revenue 75,000
Cleaning Supplies 12,000
Electricity 3,000
Maintenance 4,500
Wages and salaries 16,500
Depreciation 6,000
Rent 9,500
Administrative Expenses 7,800
Required: Prepare the companys flexible budget and variances for October.
This is all the information I was given, I wasn't given a planned wash amount.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
