Exercise 9-8 Flexible Budget (LO9-1) 10
points
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:
Skipped
Fixed Cost
per Month
eBook
$ 1,400
Cost per
Car Washed
$ 0.80
$0.06
$0.10
$ 2.30
Cleaning Supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Hint
$4,789
$ 8,300
$1,900
$1,700
0.84
Print
For example, electricity costs are $1.400 per month plus 50.06 per car washed. The company actually washed 8.100 cars in August
and collected an average of $6.50 per car washed.
Required:
Prepare the company's flexible budget for August.
Lavage Rapide
Flexible Budget
For the Month Ended August 31
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