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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

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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: Cost per Fixed Cost per Month Car Washed $0.90 $0.30 $0.50 $0.60 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $2,600 $5,800 $9,400 $3,200 $ 2.910 $0.05 For example, electricity costs are $2,600 per month plus $0.30 per car washed. The company expects to wash 9100 cars in October and to collect an average of $8.00 per car washed Auto Lavage's actual level of activity was 9.200 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9.200 Sales $78,000 Auto Lavage's actual level of activity was 9,200 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,200 Sales $78,000 Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 8,515 2,822 4.350 5,860 510 2,660 5,800 9,400 3,200 2.845 Total expense 45.962 Net operating income $32,038 Required: Prepare a flexible budget performance report for October. (Indicate the effect of 1. 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 Formula Actual Flexible Budget (per car) Flexible Budget Variance Variable Expenses Total variable expenses Fixed expenses 2. Prepare a comprehensive performance report for October using. Assume that the static budget for October was based on an activity level of 9100 cars. (Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect (.e., zero variance).) AUTO LAVAGE INC Comprehensive Performance Report For the Month Ended October 31 Flexible Actual cars Flexible Budget Budget Variance cars 9 200 9.200 Sales Volume Variance Static Budget Cars 9,100 Vanable Expenses Total variable expenses Fixed expenses

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