i need the answer quickly Melton Enterprises manufactures tires for the Formula I motor racing circuit. For August, it budgeted to manufactureand sell 4,300 tires at a variable cost of $79 per tire and total fixed costs of $63,000. The budgeted selling price was$112 per tire. Actual results in August were 4,000 tires manufactured and sold at a selling price of $114 per tire. Theactual total variable costs were $340,000, and the actual total fixed costs were $60,500.Required1. 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. Labeleach variance as favourable or unfavourable. (For variances with a $0 balance, make sure to enter "0" in theappropriate field. If the variance is zero, do not select a label. Use parentheses or a minus sign when entering anoperating loss.)Units soldRevenuesVariable costsContribution marginFixed costsOperating incomeActualResultsFlexible-BudgetVariancesFlexibleBudgetSales-VolumeVariancesStaticBudget

Answer:- A flexible budget adapts to variations in activity levels, whereas a static budget remains…

Melton Enterprises manufactures tires for the Formula I motor racing circuit. For August, it budgeted to manufacture and sell 4,300 tires at a variable cost of $79 per tire and total fixed costs of $63,000. The budgeted selling price was $112 per tire. Actual results in August were 4,000 tires manufactured and sold at a selling price of $114 per tire. The actual total variable costs were $340,000, and the actual total fixed costs were $60,500 Required 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1.

Melton Enterprises manufactures tires for the Formula I motor racing circuit. For August, it budgeted to manufacture and sell 4,300 tires at a variable cost of $79 per tire and total fixed costs of $63,000. The budgeted selling price was $112 per tire. Actual results in August were 4,000 tires manufactured and sold at a selling price of $114 per tire. The actual total variable costs were $340,000, and the actual total fixed costs were $60,500 Required 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1.

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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