Kluver Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,200 tires at a variable cost of $72 per tire and total fixed costs of $54,500. The budgeted selling price was $115 per tire. Actual results in August 2017 were 3,100 tires manufactured and sold at a selling price of $119 per tire. The actual total variable costs were $244,900, and the actual total fixed costs were $52,000. Read the requirements Requirement 1. Prepare a performance report that uses a flexible budget and a static budget. Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (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.) Static Actual Results Flexible-Budget Variances Flexible Budget Sales Volume Variances Budget Units sold Revenues Variable costs Contribution margin 00000 Fixed costs Operating income Kluver Enterprises manufactures tires for the Formula 1 motor racing circuit For August 2017, it budgeted to manufacture and sell 3,200 tires at a variable cost of $72 per tire and total fixed costs of $54,500. The budgeted selling price was $115 per tire. Actual results in August 2017 were 3, 100 tires manufactured and sold at a selling price of $119 per tire. The actual total variable costs were $244,900, and the actual total fixed costs were $52,000 Read the requirements unfavorable. (For variances with a 50 balance, make sure to enter "o" in the appropriate field. If the variance is zero, do not select a label.) Actual Flexible-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget Units sold Revenues Variable costs Contributionargin Fixed costs Operating income Requirement 2. Comment on the results in requirement 1. The total static-budget variance in operating income is $ There is an) total flexible-budget variance and a(n) sales volume variance. The sales volume variance arises solely because actual units manufactured and sold were than the budgeted 3,200 units. The flexible-budget variance in operating income is due primarily to the in unit variable costs