Kluver Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,700 tires at a variable cost of $76 per tire and total fixed costs of $54,500. The budgeted selling price was $113 per tire. Actual results in August 2020 were 3,500 tires manufactured and sold at a selling price of $117 per tire. The actual total variable costs were $290,500, 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.) Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Actual Results Requirements 1. Prepare a performance report with a flexible budget and a static budget. 2. Comment on the results in requirement 1. Print Done - X

Kluver Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,700 tires at a variable cost of $76 per tire and total fixed costs of $54,500. The budgeted selling price was $113 per tire. Actual results in August 2020 were 3,500 tires manufactured and sold at a selling price of $117 per tire. The actual total variable costs were $290,500, 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.) Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Actual Results Requirements 1. Prepare a performance report with a flexible budget and a static budget. 2. Comment on the results in requirement 1. Print Done - X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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