Kluver Enterprises manufactures tires for the Formulai motor racing circuit For August 2018, it budgeted to manufacture and sell 3,300 tires at a variable cost of 572 per tire and total fixed costs of 554,000. The budgeted selling price was 5112 per tire. Actual results in August 2016 were 3,200 tires manufactured and sold at a selling price of $113 per tire. The actual total variable costs were 5258,000, and the actual total fixed costs were $50,000. 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 flexble budget and a static budget Begin with the actual results, and then complete the flexible budget columne and the static budget columns. Label each variance as favourable or unfavourable. (For variance with a $0 balance, make sure to enter in the appropriate field. If the variance is zero, do not Select A label. Uee parentheses or a minus sign when entering an operating loes.) Actual Results Flexible-Budget Variances Flexible Budget Sales-Volume Variances Static Budget Unita sold Revenues Variable costs Contribution margin Fixed costs Operating income Requirement 2. Comment on the results in requirement 1. The total static-budget varianos in operating income is $0 There is total flexible-budget variance and than the budgeted units. The flexible-budget variance in operating income is due primarily to the in unit variable costs. sales-volume variance. The sales-volume variance arises solely because actual units manufactured and sold were