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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

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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 $ 3,360 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.70 8.10 2.30 0.40 6,500 10,100 3,900 3,630 0.06 For example, electricity costs are $3.360 per month plus $0.10 per car washed. The company expects to wash 9,800 cars in October and to collect an average of $770 per car washed. Auto Lavage's actual level of activity was 9,900 cars. The actual revenues and expenses for October are given below, Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,900 Sales $78,500 Variable expenses: Cleaning supplies 7,250 Electricity 1,085 Maintenance 2,645 Wages and salaries 4,350 Administrative 690 Fixed expenses: Electricity 3,430 Wages and salaries 6,500 Depreciation 10,100 Rent 3,900 Administrative 3,545 Total expense 43,495 Net operating income $35,005 AUTO LAVAGE INC 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 Fbxed expenses Total fixed expenses 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,800 cars. (Indicate the effect of each variance by selecting "P" 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 Flexible Budget Flexible Actual Variance Budget 9.900 9.900 Sales Volume Variance Static Budget 9,800 Number of cars Variable Expenses: Total variable expenses Fbced expenses Total fixed expenses

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