Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements:

The finished goods inventory on hand at the end of each month must be equal to 16,500 units plus 10% of the next months sales. The finished goods inventory on March 31 is budgeted to be 25,000 units.

The raw materials inventory on hand at the end of each month must be equal to 20% of the following months production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,500 components.

The company maintains no work in process inventories.

A sales budget for the All Weather speaker is as follows:

	Budgeted Sales in Units
April		124,000
May		143,000
June		220,000
July		120,000
August		58,100

Required: 1. Prepare a production budget for the All Weather for April, May, June and July.

2. Prepare a direct materials purchases budget showing the quantity of XL 12 components to be purchased for April, May and June and for the quarter in total.

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys expected costs:

	Fixed Cost per Month			Cost per Car Washed
Cleaning supplies				$	0.60
Electricity	$	3,250			0.20
Maintenance					0.40
Wages and salaries		6,400			0.50
Depreciation		10,000
Rent		3,800
Administrative expenses		3,520			0.05

For example, electricity costs are $3,250 per month plus $0.20 per car washed. The company expects to wash 9,700 cars in October and to collect an average of $7.60 per car washed.

Auto Lavages actual level of activity was 9,800 cars. The actual revenues and expenses for October are given below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		9,800
Sales	$	77,600
Variable expenses:
Cleaning supplies		6,600
Electricity		2,035
Maintenance		3,500
Wages and salaries		5,102
Administrative		580
Fixed expenses:
Electricity		3,320
Wages and salaries		6,400
Depreciation		10,000
Rent		3,800
Administrative		3,445
Total expense		44,782
Net operating income	$	32,818

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).)

2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,700 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)