Sove & Exit Submit 3 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 Cleaning supplies Electricity ints Maintenance Wages and salaries Depreciation eBook ferences Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $1.10 $2,910 0.50 0.70 6,100 0.88 5,700 3,500 3,240 8.08 For example, electricity costs are $2,910 per month plus $0.50 per car washed. The company expects to wash 9,400 cars in October and to collect an average of $8.20 per car washed Auto Lavage's actual level of activity was 9,500 cars. The actual revenues and expenses for October are given below. Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,500 Sales $80,100 Variable expenses: Cleaning supplies 10,680 Electricity 4,796 Maintenance 6,420 Wages and salaries 7,850 Administrative 810 Fixed expenses: Electricity 2,990 Wages and salaries 6,100 Depreciation 9,700 Rent 3,500 Administrative 3,145 Total expense 55,991 Net operating income $24,109 Required: Required: 1. Prepare a flexible budget performance report for October (Indicate the effect of each variance by selecting "F" for favourable, "L 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 Actual (per car) Flexible Budget Flexible Budget Variance Sales $ 8.20 $ 80,100 $ 77,900 $ 2,200 U Variable Expenses: Cleaning supplies 1.10 10,680 10,450 230F Electricity 0.50 4,796 4,750 46F Maintenance 0.70 6,420 6,650 (230) U Wages and salaries 0.80 7,850 7,600 250 F Administrative 0.08 810 760 50 F 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,400 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Number of cars Sales Variable Expenses: AUTO LAVAGE INC. Comprehensive Performance Report For the Month Ended October 31 Actual Flexible Budget Variance 9,500 $ 80,100 Flexible Budget Sales Volume Variance Static Budget 9,500 9,400 $ 77,900 Cleaning supplies 10,680 10,450 Electricity 4,796 4,750 Maintenance 6,420 6,650 Wages and salaries 7,850 7,600 Administrative 810 760