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Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys expected costs:

Fixed Cost per Month

Cost per Car Washed

Cleaning supplies				$	0.90
Electricity	$	2,050		$	0.30
Maintenance				$	0.50
Wages and salaries	$	5,300		$	0.60
Depreciation	$	8,900
Rent	$	2,700
Administrative expenses	$	2,410		$	0.04

For example, electricity costs are $2,050 per month plus $0.30 per car washed. The company expects to wash 8,600 cars in October and to collect an average of $8.00 per car washed

Auto Lavages actual level of activity was 8,700 cars. The actual revenues and expenses for October are given below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		8,700
Sales	$	71,500
Variable expenses:
Cleaning supplies		8,450
Electricity		2,700
Maintenance		3,825
Wages and salaries		5,360
Administrative		446
Fixed expenses:
Electricity		2,110
Wages and salaries		5,300
Depreciation		8,900
Rent		2,700
Administrative		2,345
Total expense		42,136
Net operating income	$	29,364

Required:

1. 2.

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).) Prepare a comprehensive performance report for October using. Assume that the static budget for October was based on an activity level of 8,600 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) - 8,700 actual - 8,700 flexible budget cars - 8,600 static budget cars

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