o Smith Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017. it budgeted to manufacture and sell 3,100 tires at a variable cost of $80 per tire and total fixed costs of $54,500. The budgeted selling price was $115 per tire. Actual results in August 2017 were 3,000 tires manufactured and sold at a selling price of $119 per tire. The actual total variable costs were $264,000, and the actual total fixed costs were $51,500 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 "0" in the appropriate field. If the variance is zero, do not select a label.) Actual Flexible Flexible-Budget Variances Results Budget Units sold Revenues Variable costs Contribution margin t Sa cu the Fixed costs Choose from any list or enter any number in the input fields and then continue to the next question 2 RUUM Flexible Sales-Volume Static Actual Results Flexible-Budget Variances Budget Variances Budget Units sold Revenues Variable costs Contribution margin Fixed costs Operating income b pl w red Etibi inve mer Requirement 2. Comment on the results in requirement 1. The total static-budget variance in operating income is $ There is ain) total flexible-budget ales Choose from any list or enter any number in the input fields and then continue to the next question 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 sales-volume variance. The sales volume variance arises solely because variance and ain) actual units manufactured and sold than the budgeted 3,100 units. The flexible-budget variance in operating were income is due in unit variable primarily to the costs Choose from any list or enter any number in the input fields and then continue to the next question. 15