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 Cost per Car Washed $0.80 0.20 0.40 0.50 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $3,160 6,300 9,900 3,700 3,410 0.04 For example, electricity costs are $3.160 per month plus 50.20 per car washed. The company expects to wash 9,600 cars in Octobe and to collect an average of $750 per car washed Auto Lavage's actual level of activity was 9700 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 expensest Cleaning Supplies 8.350 Electricity 1,995 Maintenance 3,400 Waces and salaries 5.002 1,995 3,400 5,002 480 Maintenance Wages and salaries Administrative Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative Total expense Net operating income 3,219 6,300 9,900 3,700 3,345 45,682 $30,718 Required: 1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for unfavourable, and "None" for no effect (ie, zero variance).) AUTO LAVAGE INC. Flexible Budget Performante Report For the Month Ended October 31 Actual Cost Formula (per car) 7.500 5 Flexiblo Budget Flexible Budget Variance 76,400 Sales Variable Expenses Cleaning supplies 0.80 7.50 $ 76.400 0.80 [Sales Variable Expenses Cleaning supplies Electricity Maintenance Wages and salaries Administrative 0.20 0.40 0.50 0.04 1.94 5.56 76,400 Total variable expenses Contribution margin Fixed expenses Electricity Wages and salaries Depreciation Rent Administrative 0 0 Total fixed expenses Operating income $ 76,400 $ 0 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,600 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 9,700 9,700 9,600 4. Number of cars Sales Variable Expenses Cleaning supplies Electricity Maintenance Wages and salarios Administrative F U Total variable expenses Tidende Wages and salaries Administrative 0 0 0 0 U Total variable expenses Contribution margin Fixed expenses Electricity Wages and salaries Depreciation Rent Administrative None None (None 0 0 Total fixed expenses Operating income $ 0 0