Brabham Enterprises manufactures tires for the Formula I motor racing circuit.

For August, it budgeted to manufacture and sell 4,400 tires at a variable cost of $83 per tire and total fixed costs of $63,500.

The budgeted selling price was $120 per tire.

Actual results in August were 4,300 tires manufactured and sold at a selling price of $122 per tire.

The actual total variable costs were $374,100 , and the actual total fixed costs were $62,000

Required

1: Prepare a performance report that uses a flexible budget and a static budget.

2: Comment on the results in requirement 1.