Requirements 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1. Smith Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017 , it budgeted to manufacture and sell 2,800 tires at a variable cost of $77 per tire and total fixed costs of $52,000. The budgeted selling price was $116 per tire. Actual results in August 2017 were 2,700 tires manufactured and sold at a sellir price of $118 per tire. The actual total variable costs were $226,800, and the actual total fixed costs were $49,500. Read the requirements. Requirement 1. Prepare a performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a $0 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label.) 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 varianceanda(n)manufacturedandsoldwereprimarilytothesales-volumevariance.Thesales-volumevariancearisessolelybecauseactualunitsthanthebudgeted2,800units.Theflexible-budgetvarianceinoperatingincomeisdue