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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d3182a3-6690-40be-b718-41a40b1b747e%2F34474cd3-8aa5-48c5-bcda-0339120210a5%2F8koulr_processed.png&w=3840&q=75)
Transcribed Image Text: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
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