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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $0.80 $3,160 0.20 0.40 6,300 0.50 9,900 3,700 3,410 0.04 For example, electricity costs are $3,160 per month plus $0.20 per car washed. The company expects to wash 9,600 cars in October and to collect an average of $7.50 per car washed. Auto Lavage's actual level of activity was 9,700 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed Sales 9,700 $76,400 Variable expenses: Cleaning supplies 8,350 Electricity 1,995 Maintenance 3,400 Wages and salaries 5,002 Administrative 480 Fixed expenses: Electricity 3,210 Wages and salaries 6,300 Depreciation 9,900 Rent 3,700 Administrative 3,345 Total expense 45,682 Net operating income $30,718 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).) Variable Expenses: AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Formula (per car) Actual Flexible Budget Flexible Budget Variance 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 9,600 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 Variable Expenses: AUTO LAVAGE INC. Comprehensive Performance Report For the Month Ended October 31 Flexible Budget Actual 9,700 Variance Flexible Budget Sales Volume Variance Static Budget 9,700 9,600 Total variable expenses 0 0 0 0 0 0 Fixed expenses: