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 Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month $1.00 $2,360 8.40 0.60 5,600 0.70 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 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 Sales Variable expenses: Electricity 9,000 $82,300 Cleaning supplies 9,535 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 48,483 $33,817 Total expense Net operating income 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).) Variable Expenses AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Formula Actual (per car) Flexible Budget Flexible Budget Variance Total variable expenses 0.00 0 0 0 0 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 8,900 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 Budget Actual Number of cars 9,000 Variable Expenses Total variable expenses 0 0 Fixed expenses Variance Flexible Budget Sales Volume Variance Static Budget 9,000 8,900 Number of cars 9,000 9,000 8,900 Variable Expenses Total variable expenses 0 0 0 0 0 0 Fixed expenses Total fixed expenses 0 0 0 $ 0 $ 0 $ 0