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 Cost per Car Washed $e.60 0.10 8.30 8.40 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,720 5,000 8,600 2,400 2,130 0.08 For example, electricity costs are $1,720 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in October and to collect an average of $6.20 per car washed. Auto Lavage's actual level of activity was 8,400 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,400 Sales $55,600 $ variable expenses: Cleaning supplies 5,250 Electricity 890 Maintenance 2,290 Wages and salaries 3,702 Administrative 756 Fixed expenses: Electricity 1,78 Wages and salaries 5,000 Depreciation 8,600 Rent 2,400 Administrative 2,045 Total expense 32,713 Net operating income $22,887 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 Fixed expenses Total fixed expenses 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,300 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 8,400 8,400 8,300 Variable Expenses: Total variable expenses Fixed expenses: Total fixed expenses