Walsh Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020 , it budgeted to manufacture and sell 3,500 tires at a variable cost of $78 per tire and total fixed costs of $56 , 500 . The budgeted selling price was $116 per tire. Actual results in August 2020 were 3,300 tires manufactured and sold at a selling price of $118 per tire. The actual total variable costs were $280 , 500 , and the actual total fixed costs were $52 , 000 . Read the requirements. Requirement 1. Prepare a performance report with 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.) Requirements 1. Prepare a performance report with a flexible budget and a static budget. 2. Comment on the results in requirement 1 . 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 less than the budgeted 3,200 units. The flexible-budget variance in operating income is due primarily to the in unit variable costs. .

1. Walsh Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020 , it
budgeted to manufacture and sell 3,500 tires at a variable cost of $78 per tire and total fixed costs
of $56 , 500 . The budgeted selling price was $116 per tire. Actual results in August 2020 were
3,300 tires manufactured and sold at a selling price of $118 per tire. The actual total variable
costs were $280 , 500 , and the actual total fixed costs were $52 , 000 . Read the requirements.
Requirement 1. Prepare a performance report with 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.) Requirements 1.
Prepare a performance report with a flexible budget and a static budget. 2. Comment on the
results in requirement 1 . 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 less than the budgeted 3,200 units. The flexible-budget variance in
operating income is due primarily to the in unit variable costs.