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 Cost per per Month Car Washed $1.10 $ 2,910 0.50 0.70 6,100 0.80 9,700 3,500 3,240 0.08 For example, electricity costs are $2,910 per month plus $0.50 per car washed. The company expects to wash 9,400 cars in October and to collect an average of $8.20 per car washed. Auto Lavage's actual level of activity was 9,500 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,500 Sales $ 80, 100 10,680 4,796 6,420 7,850 810 Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 2,990 6,100 9,700 3,500 3,145 Total expense 55,991 Net operating income $ 24,109 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 Cost Formula Flexible Actual (per car) Budget Flexible Budget Variance Variable Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Total variable expenses Contribution margin Fixed expenses: 0.00 0 0 Total fixed expenses 0 01 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,400 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) AUTO LAVAGE INC. Comprehensive Performance Report For the Month Ended October 31 Actual Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budge Number of cars 9,500 9,500 9,40 Variable Expenses: Total variable expenses 0 0 1 Fixed expenses: II Total fixed expenses $ 0 0