Anderson Enterprises manufactures tires for the Formula I motor racing circuit. For August, it budgeted to manufacture and sell 3,900 tires at a variable cost of $76 per tire and total fixed costs of $67,000. The budgeted selling price was $126 per tire. Actual results in August were 3,600 tires manufactured and sold at a selling price of $128 per tire. The actual total variable costs were $291,600, and the actual total fixed costs were $65,000. Required 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1. Requirement 1. Prepare a performance report that uses a flexible budget and a static budget. Begin with the actual results, and then complete the flexible budget columns and the static budget columns. Label each variance as favourable or unfavourable. (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. Use parentheses or a minus sign when entering an operating loss.) Actual Results Flexible-Budget Variances Flexible Budget Sales-Volume Variances Static Budget Units sold Revenues Variable costs Contribution margin Fixed costs