Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides dataDuring Durton Company's first two years of operations, the company reported variable costing operating income as shown below. Production and cost data for

the two years are given:

The company's $$20$ unit product cost is computed as follows:

Prepare an absorption costing income statement for Year $1.$

concerning the company's costs:

The company expects to charge customers an average of $$7\mathrm{.}60$ per car washed.

a$)$ Prepare a flexible budget for October assuming $11,000$ cars are washed.

b$)$ Prepare a Flexible Budget Variance and Sales Volume Variance if the Actual Results were: