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 $0.99 @.30 0.50 @.60 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 3,550 6,780 10, 380 4,100 3,850 @.08 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 cars washed 19, 180 Sales $82,00 Variable expenses: Cleaning supplies 9,950 Electricity 3,099 Maintenance 4,528 Wages and salaries 6,350 Administrative 89e Fixed expenses: Electricity 3,650 Wages and salaries 6,700 Depreciation 10,300 4,180 Administrative 3,745 Total expense 53,312 Net operating income $28,688 Rent Required: 1. Prepare a flexible budget performance report for October. (Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (.e., zero varlance).) AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Formula Actual (per car) Flexible Budget Flexible Budget Variance S 7.90 Sales Variable Expenses Cleaning supplies Electricity Maintenance Wages and salaries Administrative 0 0 0.00 7.9 0 0 Total variable expenses Contribution margin Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 0 0 Total fixed expenses Operating income s 0 $ 0 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 10,000 cars. (Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero varlance).) AUTO LAVAGE INC. Comprehensive Performance Report For the Month Ended October 31 Flexible Budget Flexible Actual Variance Budget Sales Volume Variance Static Budget Number of cars 10.100 10.100 10,000 Variable Expenses: Total variable expenses 0 0 0 0 0 0 Fixed expenses Total fixed expenses 0 0 0 $ 0 S 0 s 0