Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys expected costs:

Fixed Cost

per Month Cost per

Car Washed Cleaning supplies $0.90 Electricity $2,260 0.30 Maintenance 0.50 Wages and salaries 5,500 0.60 Depreciation 9,100 Rent 2,900 Administrative expenses 2,630 0.06

For example, electricity costs are $2,260 per month plus $0.30 per car washed. The company expects to wash 8,800 cars in October and to collect an average of $8.60 per car washed.

Auto Lavages actual level of activity was 8,900 cars. The actual revenues and expenses for October are given below:

Auto Lavage

Income Statement

For the Month Ended October 31 Actual cars washed 8,900 Sales$78,300 Variable expenses: Cleaning supplies 8,500 Electricity 2,760 Maintenance 4,050 Wages and salaries 5,502 Administrative 620 Fixed expenses: Electricity 2,330 Wages and salaries 5,500 Depreciation 9,100 Rent 2,900 Administrative 2,545 Total expense 43,807 Net operating income$34,493

Required:

1. Prepare 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).)

2. Prepare comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,800 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 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 per Month Cost per Car Washed $0.90 0.30 0.50 0.60 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 2,260 5,500 9,100 2,900 2,630 0.06 For example, electricity costs are $2,260 per month plus $0.30 per car washed. The company expects to wash 8,800 cars in October and to collect an average of $8.60 per car washed. Auto Lavage's actual level of activity was 8,900 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,900 Sales $ 78, 300 8,500 2,760 4,050 5,502 620 Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 2,330 5,500 9,100 2,900 2,545 Total expense 43,807 Drou 12 Mout