Anderson Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,700 tires at a variable cost of $70 per tire and total fixed costs of $53,000. The budgeted selling price was $108 per tire. Actual results in August 2020 were 3,500 tires manufactured and sold at a selling price of $110 per tire. The actual total variable costs were $266,000, and the actual total fixed costs were $50,500.

Requirements

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

Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable.