Required: 1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance...

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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).) Sales Variable Expenses: Electricity Maintenance Wages and salaries Administrative Cleaning supplies AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Formula (per car) SA $ Actual Flexible Budget Flexible Budget Variance 7.10 $ 67,800 $ 65,320 $ 2,480 F 0.20 1,942 1,840 (102) U 0.40 3,387 3,680 293 F 0.50 4,950 4,600 (350) U 0.06 610 552 (58) U 0.80 7,940 7,360 (580) U Total variable expenses 1.96 18,829 18,032 (797) U Contribution margin 5.14 48,971 47,288 Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 2,770 2,700 (70) U 5,900 5,900 0 None 9,500 9,500 0 None 3,300 3,300 0 None 2,945 3,020 75 F Total fixed expenses Operating income 24,415 24,420 5F SA $ 24,556 $ 22,868 $ (1,845) U 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).) Sales Variable Expenses: Electricity Maintenance Wages and salaries Administrative Cleaning supplies AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Formula (per car) SA $ Actual Flexible Budget Flexible Budget Variance 7.10 $ 67,800 $ 65,320 $ 2,480 F 0.20 1,942 1,840 (102) U 0.40 3,387 3,680 293 F 0.50 4,950 4,600 (350) U 0.06 610 552 (58) U 0.80 7,940 7,360 (580) U Total variable expenses 1.96 18,829 18,032 (797) U Contribution margin 5.14 48,971 47,288 Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 2,770 2,700 (70) U 5,900 5,900 0 None 9,500 9,500 0 None 3,300 3,300 0 None 2,945 3,020 75 F Total fixed expenses Operating income 24,415 24,420 5F SA $ 24,556 $ 22,868 $ (1,845) U