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 Cleaning supplies $ 0.50 Electricity $ 1,300 $ 0.08 Maintenance $ 0.15 Wages and salaries $ 4,100 $ 0.40 Depreciation $ 8,300 Rent $ 2,000 Administrative expenses $ 1,400 $ 0.02 For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.30 per car washed. Required: Prepare the company's planning budget for August.

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 Cleaning supplies $ 0.50 Electricity $ 1,300 $ 0.08 Maintenance $ 0.15 Wages and salaries $ 4,100 $ 0.40 Depreciation $ 8,300 Rent $ 2,000 Administrative expenses $ 1,400 $ 0.02 For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.30 per car washed. Required: Prepare the company's planning budget for August.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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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.
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