Exercise 9-9 Flexible Budget Performance Report [LO3, 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 per Month $2,600 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.90 0.30 0.50 0.60 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 9,100 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 Variable expenses: Cleaning supplies 8,515 Electricity 2,822 Maintenance 4,350 Wages and salaries 5,860 Administrative 510 Fixed expenses: Electricity 2,660 Wages and salaries 5,800 Depreciation 9,400 Rent 3,200 Administrative 2,845 Total expense 45,962 Net operating income $32,038 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 Budget Flexible Budget Variance Variable Expenses: Total variable expenses 0.00 0 0 0 0 Fixed expenses Total fixed expenses 0 0 S 0 $ 0 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,100 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 9,200 9,200 9,100 Variable Expenses: Total variable expenses 0 0 0 0 0 0 Fixed expenses Total fixed expenses 0 0 Olo $ $ 0 0