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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $0.90 $2,050 0.30 0.50 5,300 0.60 8,900 2,700 2,410 0.04 For example, electricity costs are $2,050 per month plus $0.30 per car washed. The company expects to wash 8,600 cars in October and to collect an average of $8.00 per car washed. Auto Lavage's actual level of activity was 8,700 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,700 Sales $71,500 Variable expenses: Cleaning supplies 8,450 Electricity 2,700 Maintenance 3,825 Wages and salaries 5,360 Administrative 446 Fixed expenses: Electricity 2,110 Wages and salaries 5,300 Depreciation 8,900 Rent 2,700 Administrative 2,345 Total expense 42,136 Net operating income $29,364 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 Variable Expenses: Total variable expenses Fixed expenses Total fixed expenses Cost Formula (per car) Actual Flexible Budget Flexible Budget Variance 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,600 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 Budget Actual Number of cars 8,700 Variable Expenses: Total variable expenses Fixed expenses: Variance Flexible Budget 8,700 Static Sales Volume Variance. Budget 8,600 Number of cars Variable Expenses: Total variable expenses Fixed expenses: Total fixed expenses AUTO LAVAGE INC. Comprehensive Performance Report For the Month Ended October 31 Actual Flexible Budget 8,700 Variance Flexible Budget Static Sales Volume Variance Budget 8,700 8,600