Exercise 9-9 Flexible Budget Performance Report [L03, L04] 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 Car Washed Cleaning supplies $0.90 Electricity $2,050 0.30 Maintenance 0.50 Wages and salaries 5,300 0.60 Depreciation 8,900 Rent 2,700 Administrative expenses 2,410 0.04 For example, electricity costs are $2,050 per month plus $0.30 per car washed. The company expects to wash 8,600 cars in October and to collect an average of $8.00 per car washed. Auto Lavage's actual level of activity was 8.700 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,700 Sales $71,500 Variable expenses: Cleaning supplies 8,450 Electricity 2,700 Maintenance 3,825 Wages and salaries 5,360 Administrative 446 Fixed expenses: Electricity 2,110 Wages and salaries 5,300 Depreciation 8,900 Rent 2,700 Administrative 2,345 Total expense 42,136 Net operating income $29,364 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 Formula (per car) Actual Flexible Flexible Budget Budget Variance Variable Expenses: Total variable expenses Fixed expenses: Total fixed expenses2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,600 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 Flexible Static Variance Budget Sales Volume Variance Budget Number of cars 3,700 8,700 8,600 Variable Expenses Total variable expenses Fixed expenses: Total fixed expenses