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 $3,160 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.80 0.20 0.40 0.50 6,300 9,900 3,700 3,410 0.04 For example, electricity costs are $3,160 per month plus $0.20 per car washed. The company expects to wash 9,600 cars in October and to collect an average of $7.50 per car washed. Auto Lavage's actual level of activity was 9,700 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,700 Sales $76,400 Variable expenses: Cleaning supplies 8,350 Electricity 1,995 Maintenance 3,400 Wares and salaries 5.902 Auto Lavage's actual level of activity was 9,700 cars. The actual revenues and expenses for October are given below Auto Lavate Income Statement For the Month Ended October 31 Actual cars washed 9,700 Sales $76,400 Variable expenses: Cleaning supplies 8,350 Electricity 1,995 Maintenance 3,400 Wages and salaries 5,202 Administrative 480 Fixed expenses: Electricity 3,210 Wages and salaries 6,300 Depreciation 9,900 Rent 3,700 Administrative 3,345 Total expense 45.682 Net operating income $30,213 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 (ie, zero variance).) AUTO LAVAGE ING Flexible Budget Performance Report Flexible Budget Performance Report For the Month Ended October 31 Cost Formula (per car) Actual Flexible Budget Flexible Budget Variance Variable Expenses Total variable expenses Fixed expenses Total fixed expenses 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity of 9,600 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfovourable, and "None" for no effe (i.e., zero variance).) AUTO LAVAGE INC Comprehensive Performance Report For the Month Ended October 31 Actual Flexible Budget Flexible Variance Budget Sales Volume Variance Static Budget Number of cars 9,700 9,700 9,600 Number of cars 9,700 9,700 9,600 Variable Expenses Total variable expenses Fixed expenses Total foced expenses