Homework: chapter 7 HW Score: 0 of 25 pts E7-21 (similar to) Save 1 of 6 (0 comp

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Homework: chapter 7 HW Score: 0 of 25 pts E7-21 (similar to) Save 1 of 6 (0 complete) Hw Score: 0%, 0 of 140 pts E Question Help Connolly Enterprises manufactures tires for the Formula 1 motor racing circuit. For August 2017, it budgeted to manufacture and sell 3,200 tires at a variable cost of $78 per tire and total fixed costs of $53,000. The budgeted selling price was $107 per tire. Actual results in August 2017 were 2,900 tires manufactured and sold at a selling price of $109 per tire. The actual total variable costs were $249,400, and the actual total fixed costs were $49,000 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 S0 balance, make sure to enter "O" in the appropriate field. If the variance is zero, do not select a label.) Actual Results Units sokd Revenues Variable costs Contribution margin Fixed costs Operating income Requirements 1. Prepare a performance report that uses a flexible budget and a static budget. 2. Comment on the results in requirement 1 Print Done Enter any number in the edit fields and then click Check Answer Clear All Check Answer

Explanation / Answer

Actual Results units sold 2900 Revenues 316100 variable costs 249,400 Contribution margin 66,700 Fixed costs 49,000 operating income 17,700

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