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 $82 per tire and total fixed costs of $64,500. The budgeted selling price was $124 per tire. Actual results in August were 4, 100 tires manufactured and sold at a selling price of $128 per tire. The actual total variable costs were $348,500, and the actual total fixed costs were $61,500. 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 "O" 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 Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget Units sold 4400 4100 Revenues $24.800 F 508400 Variable costs 348,500 U Contribution margin 176300 Fixed costs 61500 0 U F Operating Income 114800 U