Garbera Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2013?, it budgeted to manufacture and sell 3,600 tires at a variable cost of $77 per tire and total fixed costs of $54,500. The budgeted selling price was $110 per tire. Actual results in August 2013 were 3,300 tires manufactured and sold at a selling price of $112 per tire. The actual total variable costs were $293,700 and the actual total fixed costs were $50,500.

Requirements

1.

Make a performance report that uses a flexible budget and a static budget.

2.

Comment on the results in requirement 1.