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 per Month $ 1,600 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.90 0.30 0.50 0.60 4,900 8,500 2,300 2,020 0.07 For example, electricity costs are $1,600 per month plus $0.30 per car washed. The company expects to wash 8,200 cars in October and to collect an average of $6.10 per car washed. Auto Lavage's actual level of activity was 8,300 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,300 Sales $54,300 7,800 2,560 3,640 5,250 656 Variable expenses: cleaning supplies Electricity Maintenance Wages and salaries Administrative Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 1,670 4,900 8,500 2,300 1,945 Total expense 39,221 Net operating income $15,079 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 Flexible Formula Actual Budget (per car) Flexible Budget Variance Variable Expenses: Total variable expenses 0.00 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 8,200 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 Budget Number of cars 8,300 8,300 8,200 Variable Expenses: enses: Total variable expenses Fixed expenses: Total fixed expenses 0 $ 0 $ 0 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 per Month $ 1,600 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.90 0.30 0.50 0.60 4,900 8,500 2,300 2,020 0.07 For example, electricity costs are $1,600 per month plus $0.30 per car washed. The company expects to wash 8,200 cars in October and to collect an average of $6.10 per car washed. Auto Lavage's actual level of activity was 8,300 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,300 Sales $54,300 7,800 2,560 3,640 5,250 656 Variable expenses: cleaning supplies Electricity Maintenance Wages and salaries Administrative Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 1,670 4,900 8,500 2,300 1,945 Total expense 39,221 Net operating income $15,079 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 Flexible Formula Actual Budget (per car) Flexible Budget Variance Variable Expenses: Total variable expenses 0.00 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 8,200 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 Budget Number of cars 8,300 8,300 8,200 Variable Expenses: enses: Total variable expenses Fixed expenses: Total fixed expenses 0 $ 0 $ 0