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 $0.70 $1,800 0.10 0.30 5,100 0.401 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: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed Sales 8,500 $56,300 Variable expenses: Cleaning supplies 6,475 Electricity 910 Maintenance 2,075 Wages and salaries 3,802 Administrative 856 Fixed expensest Electricity 1,890 Wages and salaries 5,100 Depreciation 8,700 Rent 2,500 Administrative 2,145 Rent Administrative Total expense Net operating income 2,500 2,145 34,453 $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 Variable Expenses Cost Formula (per car) Actual Flexible Budget Flexible Budget Variance Total vanable expenses 0.00 0 0 0 0 Fixed expenses Fixed expenses. Total fixed expenses 0 0 $ 0 $ 0 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level 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).) Number of cars Variable Expenses AUTO LAVAGE INC. Comprehensive Performance Report For the Month Ended October 31 Flexible Budget Actual 8,500 Variance Flexible Sales Volume Variance Budget Static Budget 8,500 8,400 Number of cars Variable Expenses Comprehensive Performance Report For the Month Ended October 31 Flexible Budget Actual 8,500 Variance Flexible Budget Sales Volume Variance Static Budget 8,500 8,400 0 Total variable expenses 0 0 0 0 Fixed expenses Total fixed expenses 0 0 0 $ 0 $ $ 0