Walsh Enterprises manufactures tires for the Formula I motor racing circuit. For August 2018, it budgeted to manufacture and sell 2,700 tires at a variable cost of $77 per tire and total fixed costs of $53,000. The budgeted selling price was $109 per tire. Actual results in August 2018 were 2,400 tires manufactured and sold at a selling price of $113 per tire. The actual total variable costs were $206,400, and the actual total fixed costs were $48,500. Required 1. Prepare a performance report that uses a flexible budget and a static budget. 2. 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.) Actual Sales-Volume Static Flexible-Budget Variances Flexible Budget Results Variances Budget Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Requirement 2. Comment on the results in requirement 1. total flexible-budget variance and sales-volume variance. The sales volume variance arises solely because actual units manufactured and sold were than the budgeted The total static-budget variance in operating income is $ There is units. The flexible-budget variance in operating income is due primarily to the in unit variable costs