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: Cost per Fixed Cost per Month Car Washed $ 3,550 Cleaning supplies Electricity Maintenance Wages and salarles Depreciation Rent Administrative expenses $0.90 $0.30 $0.50 $0.60 $ 6,700 $10.300 $ 4,100 $ 3.850 $0.08 h For example, electricity costs are $3,550 per month plus $0.30 per car washed. The company expects to wash 10,000 cars in October and to collect an average of $7.90 per car washed Auto Lavage's actual level of activity was 10,100 cars. The actual revenues and expenses for October are given below. Auto Lavage Income Statement For the Month Ended October 31 Actual cors washed 10100 Sales $82000 Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 10,100 Sales $82,000 Variable expenses: Cleaning supplies Electricity Maintenance Wages and salarles Administrative Fixed expenses Electricity Wages and salaries Depreciation Rent Administrative 9,950 3,099 4,528 6,350 890 3,650 6.700 10.300 4.100 3,745 Total expense a 53.312 Net operating Income $28,688 Required: Prepare a flexible budget performance report for October (Indicate the effect of 1. each verlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e.. zero varlance).) Required: Prepare a flexible budget performance report for October (Indicate the effect of 1. each varlance by selecting "P" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero variance).) AUTO LAVAGE INC Flexible Budget Performance Report For the Month Ended October 31 Formula Actual Flexible (per can Budget 7.00 52.000 5 70,700 Flexitie Budget Variance $ 2.210 Sales Variable Expenses Cleaning supplies Electricity Maintenance Wages and salaries Administrative 0.00 0.30 0.50 0.00 0.00 0,050 3.000 4.520 0.350 200 0.000 3.030 5.050 0.000 soe 8000 0010 (522) 200 820 24817 87.183 7700 1.431F 5.53 55,752 Total variable expenses Contribution margin Fixed expenses Electricity Wages and salaries Depreciation Rent 3.550 6.700 10,300 4100 1 of 1 Next 2 Prepare a comprehensive performance report for October using. Assume that the static budget for October was based on an activity level of 10,000 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (.e., zero variance).) AUTO LAVAGE INC. Comprehensive Performance Report For the Month Ended October 31 Flexible Actual cars Flexible Budget Budget Varlane Sales Volume Variance Statio Budget 10,100 10.100 10.000 Variable Expenses Total variable expenses 0 0 0 0 Food expenses
