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 cost per per Month Cleaning supplies Car Washed $0.60 Electricity $1,720 0.10 Maintenance 0.30 Wages and salaries 5,000 Depreciation 8,600 Rent 2,400 Administrative expenses 2,130 0.08 0.40 For example, electricity costs are $1,720 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in October and to collect an average of $6.20 per car washed. Auto Lavage's actual level of activity was 8,400 cars. The actual revenues and expenses for October are given below. Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,400 Sales $55,600 Variable expenses: cleaning supplies Electricity Maintenance 5,250 890 2.290 For example, electricity costs are $1,720 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in October and to collect an average of $6.20 per car washed. Auto Lavage's actual level of activity was 8,400 cars. The actual revenues and expenses for October are given below: Auto Lavage Income statement For the Month Ended October 31 Actual cars washed 8,400 Sales $55,600 5,250 890 2,290 3,702 756 Variable expenses: Cleaning Supplies Electricity Maintenance Wages and salaries Administrative Fixed expenses Electricity Wages and salaries Depreciation Rent Administrative 1, 780 5,000 8,600 2,400 2,045 Total expense 32, 713 $22,887 Net operating income Sumu 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 effectie, zero variance).) AUTO LAVAGE INC Flexible Budget Performance Report For the Month Ended October 31 Cost Formula Actual Flexible (per car) Budget Flexible Budget Variance Variable Expenses 0.00 Total variable expenses 0 0 O 0 Fixed expenses 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,300 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 8,300 Number of cars 8,400 8.400 Variable Expenses 0 0 Total variable expenses