Homework: Chapter 7 Save Score: 0.85 of 1 pt 1 of 2 (1 complete) HW Score: 42.39% , 0.85 of 2 pts E7-21 (book/static) EQuestion Hep Sweeney Enterprises manufactures tires for the Formula 1 motor racing cirouit For August 2017, it budgeted to manufacture and sell 3,600 Sres at a variable cost of $71 per Sre and totel fixed conts of $55,000. The budpeted selling pice was $114 per tire. Actual resuts in August 2017 were 3,500 tires manufactured and sold at a selling price of $116 per tire. The actual total variable costs were $280.000, and the actual total fxed costs were $51.000 Read the reauirements Hequrement 1.repare a pencrmance report nar uses a nexbe ouager ane a sane ouoget Begin with the actual results, then complete the fexble budget columns and the static budget columns. Label each variance as fevorable or unfavorable. (For variances with a $0 balance, make sure to ester O in the approprate feld. If the variance is rere, do not select a label) Actual Flexible-Budget Flexible Sales-Volume Static Variances Results Budget Variances Budget 3.500 100 u 3,500 3.s00 Units sold s 406,000 7,000 F 31500 U 11400 U $ 410 400 399,000 Revenues 280,000 7,100 248.500 255,800 Variable costs 24.500 U 154 800 126.000 150,500 4300 U Conibuion margin 51,000 4,000 55,000 55.000 Fixed costs 20500 u 5,500 4300 u 76,000 0600 Operating income Requirement 2. Comment on the resuts in requirement 1 Choose from any list or enter any number in the input fieids and then click Check Answer Check Answer Clear Al All parts showing Homework: Chapter 7 Save Score: 0.85 of1 pt 1 of 2 (1 completej HW Score: 42.39 % , 0.85 of 2 pts E7-21 (book/static) EQustion Help Sweeney Enlerpises manutectures tires for the Fomule 1 motor racing cirouit. For Auguat 2017, it budgeted to menuecture and sell 3,800 Sres at a variable cost of $71 per Sre and total fxed costs of $55,000. The budgeted selling price was $114 per tre. Actul reeults in August 2017 were 3.500 tres manufactured and sold at a seling price of $116 per fre. The actual totel valable costs were $200,000, and he actual total fxed oosts wee $51,000 Read the resuiremerts 3.500 Units sold 3.500 100 u 3,600 Revenues 399,000 11,400 U 406,000 7,000 410400 31.500 U 280,000 248,500 7,100 F Viatie costs 255,600 Contribuion margin 126,000 24,500 U 150,500 4.300 U 154800 51,000 55.000 4,000 Fsed costs ss.000 75000 20,500 95.500 4.300 u 9.800 Operating incone Requirement 2.Comment on the resuts in requirement 1 The total staio budget variance in operaing income is There is a sales volume variance The sales-vume varance arises solely because achal units oal exble-budget veriance and an) manufactured and sokd were han the budgeled 3,600 units The fexibie-budget variance in operating inedme is due pimaly to the in unit vaiable costs Choose from any list or enter any number in the input feids and then click Check Answer All parts showing Clear All Check