Requirements

1.	Prepare a performance report that uses a flexible budget and a static budget.
2.	Comment on the results in requirement 1.

Garbera 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 $78 per tire and total fixed costs of $53,000. T budgeted selling price was $111 per tire. Actual results in August 2017 were 2,700 tires manufactured and sold at a selling price of $114 per tire. The actual total variable costs were $229,500, and the actual tota 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" the appropriate field. If the variance is zero, do not select a label.) Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Requirement 2. Comment on the results in requirement 1. The total static-budget variance in operating income is $ There is an) 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 2,800 units. The flexible-budget variance in operating income is due Choose from any list or enter any number in the input fields and then continue to the next