Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near...

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Correct Answer:

Auto Lavage
Flexible budget performance report
for the month ended October 31
	Actual Results	Variance		Flexible Budget	Variance		Static budget
Cars washed	10000	0	None	10000	100	Favourable	9900

Revenue	$ 79,900.00	$ 1,900.00	Favourable	$ 78,000.00	$ 780.00	Favourable	$ 77,220.00
Variable Expenses:		$ -			$ -
Cleaning supplies	$ 9,850.00	$ 850.00	unfavourable	$ 9,000.00	$ 90.00	Unfavourable	$ 8,910.00
Electricity	$ 3,082.00	$ 82.00	unfavourable	$ 3,000.00	$ 30.00	Unfavourable	$ 2,970.00
Maintenance	$ 4,525.00	$ (475.00)	Favourable	$ 5,000.00	$ 50.00	Unfavourable	$ 4,950.00
Wages and salaries	$ 6,250.00	$ 250.00	unfavourable	$ 6,000.00	$ 60.00	Unfavourable	$ 5,940.00
Administrative	$ 790.00	$ 90.00	unfavourable	$ 700.00	$ 7.00	Unfavourable	$ 693.00
Fixed Expenses					$ -
Electricity	$ 3,540.00	$ 90.00	unfavourable	$ 3,450.00	$ -	None	$ 3,450.00
Wages and salaries	$ 6,600.00	$ -	Favourable	$ 6,600.00	$ -	None	$ 6,600.00
Depreciation	$ 10,200.00	$ -	None	$ 10,200.00	$ -	None	$ 10,200.00
Rent	$ 4,000.00	$ -	None	$ 4,000.00	$ -	None	$ 4,000.00
Administrative expenses	$ 3,645.00	$ (95.00)	Favourable	$ 3,740.00	$ -	None	$ 3,740.00
Total Expenses	$ 52,482.00	$ 792.00	unfavourable	$ 51,690.00	$ 237.00	Unfavourable	$ 51,453.00
Net operating income	$ 27,418.00	$ 1,108.00	Favourable	$ 26,310.00	$ 543.00	Favourable	25,767.00

Requirement 2:

Comprehensive performance report
	Actual Results	Variance		Planning budget
Cars washed	$ 10,000	$ 100		$ 9,900

Revenue	$ 79,900	$ 2,680	F	$ 77,220
Variable Expenses:		$ -
Cleaning supplies	$ 9,850	$ 940	U	$ 8,910
Electricity	$ 3,082	$ 112	U	$ 2,970
Maintenance	$ 4,525	$ (425)	F	$ 4,950
Wages and salaries	$ 6,250	$ 310	U	$ 5,940
Administrative expenses	$ 790	$ 97	U	$ 693
Fixed Expenses
Electricity	$ 3,540	$ 90	U	$ 3,450
Wages and salaries	$ 6,600	$ -	F	$ 6,600
Depreciation	$ 10,200	$ -	F	$ 10,200
Rent	$ 4,000	$ -	F	$ 4,000
Administrative expenses	$ 3,645	$ (95)	F	$ 3,740
Total Expenses	$ 52,482	$ 1,029	U	$ 51,453
Net operating income	$ 27,418	$ 1,651	F	$ 25,767

End of Answer.

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Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		10,000
Sales	$	79,900

Variable expenses:
Cleaning supplies		9,850
Electricity		3,082
Maintenance		4,525
Wages and salaries		6,250
Administrative		790
Fixed expenses:
Electricity		3,540
Wages and salaries		6,600
Depreciation		10,200
Rent		4,000
Administrative		3,645

Total expense		52,482

Net operating income	$	27,418

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