Smith Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 2,900 tires at a variable cost of $74 per tire and total fixed costs of $52,500. The budgeted selling price was $113 per tire. Actual results in August 2017 were 2,800 tires manufactured and sold at a selling price of $115 per tire. The actual total variable costs were $226,800, and the actual total fixed costs were $49,500. 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 Sales-Volume Static Flexible-Budget Variances Results Budget Variances Budget Units sold Revenues Variable costs Contribution margin Fixed costs Operating income 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1