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 $ 1.00 0.40 0.60 0.70 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 2,360 5,600 9, 200 3,000 2,740 0.07 For example, electricity costs are $2,360 per month plus $0.40 per car washed. The company expects to wash 8,900 cars in October and to collect an average of $8.70 per car washed. Auto Lavage's actual level of activity was 9,000 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,000 Sales $ 82,300 9,535 3,640 5, 200 6,503 720 Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 2,440 5,600 9, 200 3,000 2,645 Total expense 48,483 Net operating income $ 33,817 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).) AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Flexible Actual Formula (per car) Budget Flexible Budget Variance Variable Expenses: Total variable expenses 0.00 0 0 Fixed expenses: Total fixed expenses $ 0 $ 0 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,900 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 Flexible Budget Flexible Actual Variance Budget Sales Volume Variance Static Budget Number of cars 9,000 9,000 8,900 Variable Expenses: Total variable expenses Fixed expenses: Total fixed expenses 01 0 $ $ 0