$2020$ were $3,300$ tires manufactured and sold at a selling price of $$110$ per tire. The actual total variable costs were $$257,400,$ and the actual total fixed costs were $$53,000.$

Read the requirements.

Requirement $1.$ Prepare a performance report with a flexible budget and a static budget.

Requirement $2.$ Comment on the results in requirement $1.$

The total static$-$budget variance in operating income is There is $a(n)$ total flexible$-$budget

variance and $a(n)$

sales$-$volume variance. The sales$-$volume variance arises solely because actual units

manufactured and sold were

than the budgeted $3,400$ units. The flexible$-$budget variance in operating income is due

primarily to the

in unit variable costs.