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

Cleaning supplies $ $0\mathrm{.}90$

Electricity $ $2,0500\mathrm{.}30$

Maintenance $0\mathrm{.}50$

Wages and salaries $5,3000\mathrm{.}60$

Depreciation $8,900$

Rent $2,700$

Administrative expenses $2,4100\mathrm{.}04$

For example, electricity costs are $$2,050$ per month plus $$0\mathrm{.}30$ per car washed. The company expects to wash $8,600$ cars in October and to collect an average of $$8\mathrm{.}00$ per car washed.

Auto Lavage$$s actual level of activity was $8,700$ cars. The actual revenues and expenses for October are given below:

Auto Lavage

Income Statement

For the Month Ended October $31$

Actual cars washed $8,700$

Sales $ $71,500$

Variable expenses:

Cleaning supplies $8,450$

Electricity $2,700$

Maintenance $3,825$

Wages and salaries $5,360$

Administrative $446$

Fixed expenses:

Electricity $2,110$

Wages and salaries $5,300$

Depreciation $8,900$

Rent $2,700$

Administrative $2,345$

Total expense $42,136$

Net operating income $ $29,364$

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$).)$

$2.$ Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of $8,600$ cars. $($Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$