RequiredMelton Enterprises manufactures tires for the Formula I motor racing circuit. For August, it budgeted to manufacture

and sell $4,300$ tires at a variable cost of $$79$ per tire and total fixed costs of $$63,000.$ The budgeted selling price was

$$112$ per tire. Actual results in August were $4,000$ tires manufactured and sold at a selling price of $$114$ per tire. The

actual total variable costs were $$340,000,$ and the actual total fixed costs were $$60,500.$

Required

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

Comment on the results in requirement $1.$

Requirement $1.$ Prepare a performance report that uses a flexible budget and a static budget.

Begin with the actual results, and then complete the flexible budget columns and the static budget columns. Label

each variance as favourable or unfavourable. $($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. Use parentheses or a minus sign when entering an

operating loss.$)$

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

Comment on the results in requirement $1.$

Requirement $1.$ Prepare a performance report that uses a flexible budget and a static budget.

Begin with the actual results, and then complete the flexible budget columns and the static budget columns. Label

each variance as favourable or unfavourable. $($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. Use parentheses or a minus sign when entering an

operating loss.$)$