Question

One subunit of Extreme Sports Company had the following financial results last month: (Click the icon to view the financial results.) Read the requirements Requirement 1. Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage of the budgeted amount rounded to two places. (Enter a variance for each account as a positive number, and select whether the variance is favorable [F] or unfavorable [U]. For any zero variances, enter a 0 in the variance column and then leave the For U box blank. Enter the variance percent as a percentage rounded to two decimal places, X.XX%.) Actual Flexible Flexible Budget Extreme - Subunit X Results Budget Variance (For U) Direct Materials $ 29,100 $ 27,200 Direct Labor 13,800 14,300 Indirect Labor 26,900 23,600 Utilities 12,500 11,600 Depreciation 26,000 26,000 4,400 5,300 Repairs and Maintenance $ 112,700 $ 108,000 Total - Requirements . Х 1. Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage of the budgeted amount rounded to two decimal places 2. Based on the data presented, what type of responsibility center is this subunit? 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $2,500 or 10%? 4. Should only unfavorable variances be investigated? Explain. Wer. Print Done

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Answer 1

Variances

	Actual results	Flexible budget	Flexible budget variance
Direct material	29100	27200	1900 U
Direct labor	13800	14300	500 F
Indirect labor	26900	23600	3300 U
Utilities	12500	11600	900 U
Depreciation	26000	26000	0 None
Repairs and maintenance	4400	5300	900 F
Total	112700	108000	4700 U