1.FLEXIBLE BUDGET Brabham Enterprises Manufactures Tires For The Formula 1 Motor Racing Circuit. For August 2006, It Budgeted To Manufacture And Sell 3.000 Tires At A Variable Cost Of $74 Per Tire And Total Fixed Costs Of $54.000. The Budgeted Selling Price Was $110 Per Tire. Actual Results In August 2006 Were 2,800 Tires Manufactured And Sold At A Selling

1.FLEXIBLE BUDGET Brabham Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2006, it budgeted to manufacture and sell 3.000 tires at a variable cost of $74 per tire and total fixed costs of $54.000. The budgeted selling price was $110 per tire. Actual results in August 2006 were 2.800 tires manufactured and sold at a selling price of $112 per tire. The actual total variable costs were $229.600, and the actual total fixed costs were $50.000. Required 1. Prepare a performance report that includes static budget, actual results, and flexible budget. 2. Comment on the variances.