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 $1.00 0.40 0.60 0.70 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $2,360 5,600 9,200 3,000 2,740 0.07 For example, electricity costs are $2,360 per month plus $0.40 per car washed. The company expects to wash 8,900 cars in October and to collect an average of $8.70 per car washed. Auto Lavage's actual level of activity was 9,000 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,000 Sales $82,300 Variable expenses: Cleaning supplies 9,535 Electricity 3,640 Maintenance 5,200 Wages and salaries 6,503 Administrative 720 Fixed expenses: Electricity 2,440 Wages and salaries 5,600 Depreciation 9,200 Rent 3,000 Administrative 2,645 Total expense 48, 483 Net operating income $33,817 Required: 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 Flexible Flexible Budget Actual (per car) Budget Variance $ 8.70 $ 82,300 $ 78,300 $ 4,000 F Sales Variable Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative 1.00 0.40 0.60 0.70 0.07 9,535 3,640 5,200 6,503 720 9,000 3,600 5,400 6,300 630 535 U 400 (200) F 203 U 90 U 2.77 5.93 25,598 56,702 24,930 53,370 U F Total variable expenses Contribution margin Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 2,440 5,600 9,200 3,000 2,645 2,360 5,600 9,200 3,000 2,740 80U 0 None 0 None O None (95) F 4 Total fixed expenses Operating income 22,885 33,817 $ 22,900 30,470 F F S 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,900 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 Flexible Flexible Budget Actual Variance Budget Sales Volume Variance Static Budget 9,000 Number of cars Sales Variable Expenses: 9,000 $ 78,300 $ 8,900 77,430 $ 82,300 $ 4,000 F 8706 $ 9,535 100U 8,900 535 U 40 U Cleaning supplies Electricity Maintenance Wages and salaries Administrative 3,640 5,200 9,000 3,600 5,400 6,300 40U 60U 3,560 5,340 (200) 70 10 6,230 6,503 720 203 U 90 U 630 70 623 7 25,598 56,702 u F 24,930 53,370 U F 24,653 52,777 Total variable expenses Contribution margin Fixed expenses: Electricity Wages and salaries Depreciation Rent 2,440 5,600 9,200 3,000 2,645 80U O None O None 2,360 5,600 9,200 3,000 2.740 0 None 0 None 0 None 0 None 0 None o None o None 2,360 5,600 9,200 3,000 2,740 O None (95) Administrative E 7 O None Total fixed expenses Operating income 22,885 $ 33,817 F F 22,900 $ 30,470 22,900 29,877 $ Administrative Cleaning supplies Depreciation Electricity choose form these Maintenance Rent Sales Wages and salaries The options given are things that should be filled in the blanks, but I'm not sure which of them is correct. I have written all the parts I think I need to write but there are still two lines need fill in
