1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Formula Actual Flexible Flexible Budget (per car) Budget Variance Variable Expenses: Total variable expenses 0.00 0 0 0 0 Fixed expenses: Total fixed expenses 0 0 $ 0 $ 02. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,600 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) AUTO LAVAGE INC. Comprehensive Performance Report For the Month Ended October 31 Actual Flexible Budget Flexible Static Variance Budget Sales Volume Variance Budget Number of cars 9,700 9,700 9,600 Variable Expenses: Total variable expenses 0 0 0 0 Fixed expenses:Exercise 9-9 Flexible Budget Performance Report [L03, L04] Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's expected costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies $0.80 Electricity $3,160 0.20 Maintenance 0.40 Wages and salaries 6,300 0.50 Depreciation 9,900 Rent 3,700 Administrative expenses 3,410 0.04 For example, electricity costs are $3,160 per month plus $0.20 per car washed. The company expects to wash 9,600 cars in October and to collect an average of $7.50 per car washed. Auto Lavage's actual level of activity was 9,700 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,700 Sales $76,400 Variable expenses: Cleaning supplies 8,350 Electricity 1,995 Maintenance 3,400 Wages and salaries 5,002 Administrative 480 Fixed expenses: Electricity 3,210 Wages and salaries 6,300 Depreciation 9,900 Rent 3,700 Administrative 3,345 Total expense 45,682 Net operating income $30,718