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'sexpectedcosts:

Fixed Cost

per MonthCost per

Car WashedCleaning supplies$0.70Electricity$1,8000.10Maintenance0.30Wages and salaries5,1000.40Depreciation8,700Rent2,500Administrative expenses2,2400.09

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 31Actual cars washed8,500Sales$56,300Variable expenses:Cleaning supplies6,475Electricity910Maintenance2,075Wages and salaries3,802Administrative856Fixed expenses:Electricity1,890Wages and salaries5,100Depreciation8,700Rent2,500Administrative2,145Total expense34,453Net 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).)

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).)