Treanor Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,300 tires at a variable cost of $73 per tire and total fixed costs of $56,500. The budgeted selling price was 5107 per tire. Actual results in August 2017 were 3,200 tires manufactured and sold at a selling price of $109 per tire. The actual total variable costs were $256,000, and the actual total fixed costs were $53,500. 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-Budget Flexible Sales-Volume Static Results Variances Budget Variances Budget - X Units sold Requirements Revenues Variable costs Contribution margin 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1 Fixed costs Operating income Print Done Requirement 2. Comment on the results in requirement 1. The total static-budget variance in operating income is $ There is an) total flexible-budget variance and an sales-volume variance. The sales-volume variance arises solely because actual units manufactured and sold were than the budgeted 3,300 units. The flexible-budget variance in operating income is due primarily to the in unit variable costs. Treanor Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,300 tires at a variable cost of $73 per tire and total fixed costs of $56,500. The budgeted selling price was $107 per tire. Actual results in August 2017 were 3,200 tires manufactured and sold at a selling price of $109 per tire. The actual total variable costs were $256,000, and the actual total fixed costs were $53,500 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.) Flexible Static Actual Results Flexible-Budget Variances Sales-Volume Variances Budget Budget Units sold Revenues Variable costs Contribution margin Fixed costs 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 variance and a(n) sales-volume variance. The sales-volume variance arises solely because actual units manufactured and sold were than the budgeted 3,300 units. The flexible-budget variance in operating income is due primarily to the in unit variable costs