Sweeney Enterprises manufactures tires for the Formula I motor racing circuit. The company's budgeted and actual amounts are as follows: Budgeted for August 2017 Units to manufacture and sell3,600 Variable cost per tire$71 Total fixed costs$55,000 Budgeted selling price per tire$114 Actual Results for August 2017 Units manufactured and sold3,500 Selling price per tire$116 Total variable costs$280,000 Total fixed costs$51,000 Requirement Prepare a performance report that uses a flexible budget and a static budget. a.Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. b.Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfavorable) when describing the variances. c.For variances with a zero amount, make sure to enter the result of "=0" in the appropriate cell and leave the drop-down to identify the variance as either F or U blank.

Some of the formulas supporting calculation and explanations are as follows:Supporting Calculation*…

Answered: Sweeney Enterprises manufactures tires…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 48BEB: Performance Report Based on Budgeted and Actual Levels of Production Balboa Company budgeted...

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Sweeney Enterprises manufactures tires for the Formula I motor racing circuit. The company's budgeted and actual amounts are as follows:

		Budgeted for August 2017
		Units to manufacture and sell	3,600
		Variable cost per tire	$71
		Total fixed costs	$55,000
		Budgeted selling price per tire	$114

		Actual Results for August 2017
		Units manufactured and sold	3,500
		Selling price per tire	$116
		Total variable costs	$280,000
		Total fixed costs	$51,000




Requirement
Prepare a performance report that uses a flexible budget and a static budget.
	a.	Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.
	b.	Use the ABS function when calculating variances, and use the drop-down selections for F (favorable) or U (unfavorable) when describing the variances.
	c.	For variances with a zero amount, make sure to enter the result of "=0" in the appropriate cell and leave the drop-down to identify the variance as either F or U blank.

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