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: Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month $0.60 $ 3,250 0.20 0.40 6,400 0.50 10,000 3,800 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 Lavage's 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 Sales 9,800 $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 Net operating income 44,782 $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).)