Exercise 9-6 (10 minutes)
The variance report compares actual results to the planning budget and
should
not
be used to evaluate how well costs were controlled during April.
The planning budget is based on 100 jobs, but the actual results are for
Exercise 9-14 (30 minutes)
Lavage Rapide
Flexible Budget Performance Report
For the Month Ended August 31
Actual
Results
Revenue
and
Spending
Variances
Flexible
Budget
Activity
Variances
Planning
Budget
Cars washed (q) ……………………………..
8,800
8,800
9,000
Revenue ($4.90q) …………………………...
$43,080
$ 40
U
$43,120
$980
U
$44,100
Expenses:
Cleaning supplies ($0.80q) ………………
7,560
520
U
7,040
160
F
7,200
Electricity ($1,200 + $0.15q) …………..
2,670
150
U
2,520
30
F
2,550
Maintenance ($0.20q)…………………….
2,260
500
U
1,760
40
F
1,800
Wages and salaries
($5,000 + $0.30q) ………………………
8,500
860
U
7,640
60
F
7,700
Depreciation ($6,000) …………………….
6,000
0
6,000
0
6,000
Rent ($8,000) ………………………………
8,000
0
8,000
0
8,000
Administrative expenses
($4,000 + $0.10q) ………………………
4,950
70
U
4,880
20
F
4,900
Total expense …………………………………
39,940
2,100
U
37,840
310
F
38,150
Net operating income ……………………….
$ 3,140
$2,140
U
$ 5,280
$670
U
$ 5,950
