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One subunit of Winter Sports Manufacturing Company had the following financial results last month HE (Click the icon to view the financial results) Requirements 1. Complete the performance evaluation report for this subunit. 2. Based on the data presented, what type of responsibility center is the subunt? 1. Which items should be investigated if part of management's decision criteria is to investigate al variancesceng $3,200 of 10%? 4. Should only unfavorable variances be investigated? Explain Requirement 1. Complete the performance evaluation report for this subunit E och variance as favorable for favorable (U) the variance is make sure thernes as positive number Round the variance percentages to the nearest hundredh percent, XOC in Avance of considered favorable) Label Variance Produse U or ) $ Direct materials Det labor Actual Budgeted 12,000 5 12.000 13.265 14 000 23.380 20.000 16.455 15.000 30,250 30.250 Depreciation Repairs and maintenance 100,401 Total Choose from any list of enter any number in the input fields and then click Check Answer 4 CA

Answer 1

Answer-

	Actual	Flexible		Flexible Budget
Product	Results	Budget	Variance	Variance %(F or U)
Direct Materials	$12,930	$12,000	$930	7.75%	U
Direct Labor	13,265	14,000	$735	5.25%	F
Indirect Labor	23,380	20,000	$3,380	16.9%	U
Utilities	16,455	15,000	$1,455	9.7%	U
Depreciation	30,250	30,250	$0	0.00%	No Variance
Repairs and Maintenance	4,205	5,000	$795	15.9%	F
Total	$100,485	$96,250	$4,235	4.4%	U

Calculation of Percentage based on Flexible Budget Data

	Actual	Flexible			Flexible Budget
Product	Results	Budget	Variance $	F or U	Variance (F or U)
Direct Materials	$12,930	$12,000	$930	U	(930/12,000) = 7.75%	U
Direct Labor	13,265	14,000	$735	F	(735 / 14,000) = 5.25%	F
Indirect Labor	23,380	20,000	$3,380	U	(3,380/20,000) = 16.9%	U
Utilities	16,455	15,000	$1,455	U	(1,455 / 15,000) = 9.7%	U
Depreciation	30,250	30,250	$0	No variance	0.00%	No Variance
Repairs and Maintenance	4,205	5,000	$795	F	(795 / 5,000) = 15.9%	F
Total	$100,485	$96,250	$4,235	U	(4,235 / 96,250) = 4.4%	U

2-The subunit is a cost centre.

3-The following items should be investigated:-

Indirect labor

Repair and Maintenance

4-No,is should be investigated to make sure that they are not hurting the business in long run.

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