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Exercise 10-9 (15 minutes)
Auto Lavage
Planning Budget
For the Month Ended October 31
Budgeted cars washed (q) .............................
8,000
Revenue ($5.90q) .........................................
$47,200
Expenses:
Cleaning supplies ($0.70q) ..........................
5,600
Electricity ($1,400 + $0.10q) ......................
2,200
Maintenance ($0.30q).................................
2,400
Wages and salaries ($4,700 + $0.40q) ........
7,900
Depreciation ($8,300) .................................
8,300
Rent ($2,100) ............................................
2,100
Administrative expenses ($1,800 + $0.05q) .
2,200
Total expense ...............................................
30,700
Net operating income ....................................
$16,500
Exercise 10-12 (20 minutes)
Auto Lavage
Revenue and Spending Variances
For the Month Ended October 31
Flexible
Budget
Actual
Results
Revenue
and
Spending
Variances
Cars washed (q) ..........................
8,100
8,100
Revenue ($5.90q) ........................
$47,790
$49,300
$1,510
F
Expenses:
Cleaning supplies ($0.70q) .........
5,670
6,100
430
U
Electricity ($1,400 + $0.10q) .....
2,210
2,170
40
F
Maintenance ($0.30q)................
2,430
2,640
210
U
Wages and salaries
($4,700 + $0.40q) ..................
7,940
8,260
320
U
Depreciation ($8,300) ................
8,300
8,300
0
Rent ($2,100) ...........................
2,100
2,300
200
U
Administrative expenses
($1,800 + $0.05q) ..................
2,205
2,100
105
F
Total expense ..............................
30,855
31,870
1,015
U
Net operating income ...................
$16,935
$17,430
$ 495
F
Exercise 10-13 (30 minutes)
Auto Lavage
Flexible Budget Performance Report
For the Month Ended October 31
Planning
Budget
Activity
Variances
Flexible
Budget
Revenue
and
Spending
Variances
Actual
Results
Cars washed (q) ...................................
8,000
8,100
8,100
Revenue ($5.90q) .................................
$47,200
$590
F
$47,790
$1,510
F
$49,300
Expenses:
Cleaning supplies ($0.70q) ..................
5,600
70
U
5,670
430
U
6,100
Electricity ($1,400 + $0.10q) ..............
2,200
10
U
2,210
40
F
2,170
Maintenance ($0.30q).........................
2,400
30
U
2,430
210
U
2,640
Wages and salaries
($4,700 + $0.40q) ...........................
7,900
40
U
7,940
320
U
8,260
Depreciation ($8,300) .........................
8,300
0
8,300
0
8,300
Rent ($2,100) ....................................
2,100
0
2,100
200
U
2,300
Administrative expenses
($1,800 + $0.05q) ...........................
2,200
5
U
2,205
105
F
2,100
Total expense .......................................
30,700
155
U
30,855
1,015
U
31,870
Net operating income ............................
$16,500
$435
F
$16,935
$ 495
F
$17,430
