Flexible Budgets, Direct-Cost Variances, and Management Control Flexible Budget Sweeney Enterprises manufactures tires for the Formula I motor racing circuit. The company's budgeted and actual amounts are as follows: Budgeted for August 2017 Units to manufacture and sell Variable cost per tire Total fixed costs Budgeted selling price per tire 3,550 $72 $54,500 $115 Actual Results for August 2017 Units manufactured and sold 3,500 Selling price per tire $116 Total variable costs $280,000 Total fixed costs $51,000 Use the blue shaded areas for inputs. Always use cell references and formulas where appropriate to receive full a. Requirement Prepare a performance report that uses a flexible budget and a static budget. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfavorable) when describing the For variances with a zero amount, make sure to enter the result of "=0" in the appropriate cell and leave the drop-down to identify the variance as b. c. Prepare a performance report that uses a flexible budget and a static budget. a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. b. Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or (unfavorable) when describing the variances. c. For variances with a zero amount, make sure to enter the result of "=0" in the appropriate cell and leave the drop-down to identify the variance as either For blank. (Always use cell references and formulas where appropriate to receive full credit. If copy/paste from the Instruction tab you will be marked wrong.) Actual Results Flexible-Budget Variance Flexible Budget Sales-Volume Variances Static Budget *Variances should be presented as positive numbers using the ABS function. Units sold Revenues Variable costs Contribution margin Fixed costs Operating income