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 $ 2,260 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Washed $ 0.90 0.30 0.50 0.60 5,500 9.100 2,900 2,630 0.06 For example, electricity costs are $2,260 per month plus $0.30 per car washed. The company expects to wash 8,800 cars in October and to collect an average of $8.60 per car washed Auto Lavage's actual level of activity was 8,900 cars. The actual revenues and expenses for October are given below. Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,900 Sales $78,300 Variable expenses: Cleaning supplies 8,500 Electricity 2,760 Maintenance 4,050 Wages and salaries 5,502 Administrative 620 Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative Total expense Net operating income 2,330 5,500 9.100 2.900 2,545 43.807 $34,493 Electricity Wages and salaries Depreciation Rent Administrative 2,330 5,500 9,100 2,900 2,545 Total expense Net operating income 43,807 $34,493 Required: 1. Prepare a flexible budget performance report for October (Indicate the effect of each variance by selecting "F" fo- 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 Flexible Budget Flexible Actual Variance Budget Q8 Sales Sales Volume Variance Static Budget Variable Expenses. Cleaning supplies Electricity Maintenance Wages and salaries Administrative Contribution Margin Q8 What would total sales be for the Flexible Budget? Q10 Q9 29 What would the Contribution Margin be for the Flexible Budget? Q10 A) What would the Flexible Budget Variance be for Contribution Margin? Q10 A) Is the Flexible Budget Variance for Contribution Margin Favourable or Unfavourable