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$0.90Electricity$2,2600.30Maintenance0.50Wages and salaries5,5000.60Depreciation9,100Rent2,900Administrative expenses2,6300.06

For example, electricity costs are $2,260 per month plus $0.30 per car washed. The company expects to wash 8,800 cars in October and to collect an average of $8.60 per car washed.

Auto Lavage's actual level of activity was 8,900 cars. The actual revenues and expenses for October are given below:

Auto Lavage

Income Statement

For the Month Ended October 31Actual cars washed8,900Sales$78,300Variable expenses:Cleaning supplies8,500Electricity2,760Maintenance4,050Wages and salaries5,502Administrative620Fixed expenses:Electricity2,330Wages and salaries5,500Depreciation9,100Rent2,900Administrative2,545Total expense43,807Net operating income$34,493

Required:

1.Prepare 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 comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,800 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 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: Fixed Cost Cost per per Month Car Washed Cleaning supplies $0.90 Electricity $ 2,260 0.30 Maintenance 0.50 Wages and salaries 5,500 0.60 Depreciation 9,100 Rent 2,900 Administrative expenses 2,630 0.06 [ For example. electricity costs are $2,260 per month plus $0.30 per car washed. The company expects to wash 8,800 cars in October and to collect an average of $8.60 per car washed. Auto Lavage's actual level of activity was 8,900 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,900 Sales $78,300 Variable expenses: Cleaning supplies 8,500 Electricity 2,760 Maintenance 4,050 Wages and salaries 5,502 Administrative 620 Fixed expenses: Electricity 2,330 Wages and salaries 5,500 Depreciation 9,100 Rent 2,900 Administrative 2,545 Total expense 43,807 I n\"... a A: 1': ll! klnul- \\ Administrative 2,545 Total expense 43,807 Net operating income $34,493 [ 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\" Fixed expenses: 1 nu... a "c 1'.) ll! Aland- \\ Total fixed expenses 0 O Operating income 78,300 $ 0 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,800 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 Actual Flexible Budget Flexible Sales Volume Static Variance Budget Variance Budget Number of cars 8,900 8,900 8,800 Variable Expenses: Cleaning supplies Wages and salaries Maintenance Administrative Electricity Total variable expenses 0 0 Contribution margin 0 0 O o