Exercise 9-9 Flexible Budget Performance Report [LO3, LO4] 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 Coat per per Month Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 1.10 0.50 0.70 0.80 $ 2,500 5,700 9,300 3,100 2,800 0.04 For example, electricity costs are $2,500 per month plus $0.50 per car washed. The company expects to wash 9,000 cars in October and to collect an average of $8.80 per car washed. Auto Lavage's actual level of activity was 9100 cars. The actual revenues and expenses for October are given below: Auto Lavage Incone Statement For the Month Ended October 31 Actual cars washed Sales 9,100 $82,600 Variable expenses Cleaning supplies Electricity Maintenance Wages and salaries Adninistrative 10,510 4,622 6,050 7,450 410 Fixed expenses1 Electricity Wages and salaries Depreciation Rent Adninistrative 2,550 5,700 9,300 3,100 2,745 Total expense 52, 437 Net operating incone 30,163 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 ormulaActualF (per car) Flexible Flexible Budget 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 9,000 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 Variance Flexible Budget Sales Volume Variance Static Budget Actual Number of cars 9.100 9.100 9,000 Variable Expenses Total variable expenses Fixed expenses: Total fixed expenses