use management accounting method

QUESTION 2 Luxury Car Spa owns and operates a large automatic car wash facility. The number of cars cleaned per month varies widely, and management would like to better understand costs by preparing a flexible budget. Please fill in the missing data to prepare a flexible budget for the company. LUXURY CAR SPA - FLEXIBLE BUDGET LUXURY CAR SPA - MAY ACTUALS Monthly Activity Level (# of Cars) Actual Information for May # of Cars Per Car 7,000 8,000 9,000 8,300 Sales ? $80,000 Sales $83,000 Variable Expenses Variable Expenses Cleaning Supplies ? 6,000 Cleaning Supplies 6,350 Utilities 4,800 Utilities 4,865 Maintenance 1,200 Maintenance 1,600 Total Variable Expenses ? Total Variable Expenses 12,815 Contribution Margin Contribution Margin 70,185 Fixed Expenses Fixed Expenses Operator Wages 10,000 Operator Wages 10,050 Depreciation 20,000 Depreciation 20,200 Rent 8,000 Rent 8,000 Insurance 1,000 Insurance 1,100 Selling and Admin 4,000 Selling and Admin 3,800 Total Fixed Expenses 43,000 Total Fixed Expenses 43,150 Operating Income Operating Income 27,035Required: 1) Complete the Flexible Budget above. Use Exhibit 93 as a guide. 2) Assume that for May the company had expected to clean 8,000 cars. The actual number of cars cleaned was 8,300. Actual cost information for August is given above. Use this information and your flexible budget to prepare a Flexible Budget Performance Report for May. Use the format in Exhibit 94. 3) What is your opinion of how the company performed for May? What has the company done well, and what does it need to improve