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 Flexible Actual Budget (per car) Flexible Budget Variance Sales Variable Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative 0 0 Total variable expenses Contribution margin Fixed expenses: 0.00 0 0 0 Electricity Wages and salaries Depreciation Administrative Rent 0 0 Total fixed expenses Operating income $ 0 $ 0 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,400 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 Flexible Static Actual Flexible Budget Variance Budget Sales Volume Variance Budget 9,500 9,500 9,400 Number of cars Sales Variable Expenses: Administrative Cleaning supplies Electricity Maintenance Wages and salaries 0 0 0 0 0 0 Total variable expenses Contribution margin Fixed expenses: Electricity Wages and salaries Depreciation Administrative Rent 0 0 0 Total fixed expenses Operating income 0 $ 0 $ 0 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 0.89 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 2,910 6,100 9,700 3,500 3,240 0.08 For example, electricity costs are $2,910 per month plus $0.50 per car washed. The company expects to wash 9,400 cars in October and to collect an average of $8.20 per car washed. Auto Lavage's actual level of activity was 9,500 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,500 Sales $80, 100 10,680 4,796 6,420 7,850 810 Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Fixed Electricity Wages and salaries Depreciation Rent Administrative ixed expenses: 2,990 6,100 9,700 3,500 3,145 Total expense 55,991 Net operating income $24,109