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 per Month Cost per Car Washed $1.10 0.50 0.70 0.80 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $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 9,100 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,100 Sales $82,600 $ Variable expenses: Cleaning supplies 10,510 Electricity 4,622 Maintenance 6,050 Wages and salaries 7,450 Administrative 410 Fixed expenses : Electricity 2,550 Wages and salaries 5,700 Depreciation 9,300 Rent 3,100 Administrative 2,745 Total expense 52,437 Net operating income $30, 163 1 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 Formula (per car) Actual Flexible Budget 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 9,000 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 Actual Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Number of cars 9,100 9,100 9,000 Variable Expenses: Total variable expenses 0 0 0 0 0 0 Fixed expenses: Total fixed expenses 0 0 0 01 $ 0 $ S