Sweeney Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017 , it budgeted to manufacture and sell 3,600 tires at a variable cos of $71 per tire and total fixed costs of $55,000. The budgeted selling price was $114 per tire. Actual results in August 2017 were 3,500 tires manufactured and sol at a selling price of $116 per tire. The actual total variable costs were $280,000, and the actual total fixed costs were $51,000. 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 "0" in the appropriate field. If the variance is zero, do not select a label.) Requirement 2. Comment on the results in requirement 1. The total static-budget variance in operating income is $ There is a(n) 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 3,600 units. The flexible-budget variance in operating income is due primarily to the in unit variable costs