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 $ $0\mathrm{.}80$

Electricity $ $1,9500\mathrm{.}20$

Maintenance $0\mathrm{.}40$

Wages and salaries $5,2000\mathrm{.}50$

Depreciation $8,800$

Rent $2,600$

Administrative expenses $2,3000\mathrm{.}03$

For example, electricity costs are $$1,950$ per month plus $$0\mathrm{.}20$ per car washed. The company expects to wash $8,500$ cars in October and to collect an average of $$6\mathrm{.}40$ per car washed.

Auto Lavage$$s actual level of activity was $8,600$ cars. The actual revenues and expenses for October are given below:

Auto Lavage

Income Statement

For the Month Ended October $31$

Actual cars washed $8,600$

Sales $ $56,700$

Variable expenses:

Cleaning supplies $7,250$

Electricity $1,800$

Maintenance $3,000$

Wages and salaries $4,560$

Administrative $350$

Fixed expenses:

Electricity $2,000$

Wages and salaries $5,200$

Depreciation $8,800$

Rent $2,600$

Administrative $2,245$

Total expense $37,805$

Net operating income $ $18,895$

Required:

$1.$ Prepare a flexible budget performance report for October. $($Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for

$2.$ Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of $8,500$ cars. $($Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$unfavourable$,$ and "None" for no effect $($i$.$e$.,$ zero variance$).)$