Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2012, it...
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Accounting
Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2012, it budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and total fixed costs of $54,000. The budgeted selling price was $110 per tire. Actual results in August 2012 were 2,800 tires manufactured and sold at a selling price of $112 per tire. The actual total variable costs were $229,600, and the actual total fixed costs were $50,000. a) Prepare a performance report with the variances' analysis (Level 2) (using the tabular format as in the example in your book and slides) that uses a flexible budget and a static budget. b) Comment on the results in (a) related t the Sale-Volume variances and the Flexible Budget Variances. (Note: Present separately your calculation supporting the table prepared)
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