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 $1,800 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Washed $0.70 0.10 0.30 0.40 5,100 8,700 2,500 2,240 0.09 For example, electricity costs are $1,800 per month plus $0.10 per car washed. The company expects to wash 8,400 cars in October and to collect an average of $6.30 per car washed. Auto Lavage's actual level of activity was 8,500 cars. The actual revenues and expenses for October are given below: are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,500 Sales $56,300 Variable expenses: Cleaning supplies 6,475 Electricity 910 Maintenance 2,075 Wages and salaries 3,802 Administrative 856 Fixed expenses: Electricity 1,890 Wages and salaries 5,100 Depreciation 8,700 Rent 2,500 Administrative 2,145 Total expense 34,453 Net operating income $21,847 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 (per car) Actual Flexible Budget Flexible Budget Variance $ 6.30 $ 56,300 $ 52,920 0.70 5,880 5,950 2,750 Sales Variable Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative 0.10 0.30 0.40 0.09 1.59 5,880 Total variable expenses Contribution margin Fixed expenses: 5,950 46,970 4.71 50,420 T20 TUJIU Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative Total fixed expenses 0 0 50,420 $ 46,970 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity leve of 8,400 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Actual Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Number of cars 8,500 8,500 8,400 Variable Expenses: Total variable expenses 0 0 Oo 0 0 Fixed expenses