For example, electricity costs are $3,450 per month plus $0.30 per car washed. The company expects to wash 9,900 cars in October and to collect an average of $7.80 per car washed. Auto Lavage's actual level of activity was 10,000 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 10,000 Sales $ 79,900 9,850 3,082 4,525 6,250 790 Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Fixed expenses: Electricity Wages and salaries Depreciation Rent istrative 3,540 6,600 10,200 4,000 3,645 Total expense 52,482 Net operating income $ 27,418 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 Flexible Formula Actual Budget (per car) Flexible Budget Variance Sales Variable Expenses: Total variable expenses 0.00 0 0 0 0 0 Fixed expenses Total fixed expenses 0 0 $ 0 $ 0 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,900 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 Variance Flexible Budget Sales Volume Variance Static Budget Number of cars 10,000 10,000 9,900 Variable Expenses: Total variable expenses Fixed expenses Total fixed expenses