Question

Drop downs are F or U for the clear right boxes

Managerial Accounting Acct1212-W07-28217-SU-2019 Jacque Homework: Ch 24 Probl 1 of 1 (1 completely Score: 1.75 of 7 pts P24-20A (book/static) One subunit of Racer 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 the subunit. (Enter a variance for each account as a positive number and select whether the variance is favorable or unfavorable. Enter the variance percent as a percentage rounded to two decimal places, XXX ) % Variance Flexible Budget Variance (For U) $ 25,000 F - i X For U) Requirements Subunit X Nel Sales Revenue Variable Expenses Contribution Margin Traceable Fixed Expenses Actual Flexible Results Budget $ 476.000 $ 451,000 261,000 251,000 $ 215.000 $ 200,000 40 000 25000 $ 175.000 $ 174.000 10.000 U $ 15,000 F 14,000 u 1.000F $ Divisional Segment Margin 1. Complete the performance evaluation report for the subunit (round to two decimal places 2. Based on the data presented and your knowledge of the company, what type of responsibility conter is this subunit? 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding S8,000 and exceeding 10% both criteria must be met)? 4. Should only unfavorable variances be investigated? Explain 5. Is it possible that the variances are due to a higher than expected sales volume? Explain. 6. Will management place equal weight on each of the variances exceeding $8,000? Explain 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain 8. List one key performance indicator for the three other balanced Scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators you list. | Print | Done]

Answer 1

req. 4 the answer is NO. Favorable variances should be investigated to make sure that they are not effecting the business in the long run.

Reg 1 Date / / | Actual flexible Rexible Budget % variance Subunit X Results Budger variance (for) (for U) Net Sales Revenue 476000 45 1000 | 25000 F 5.54% E venable Expenses 261000 2 51000 100vo u 3.982 V Cont Margin 21500 200000 15000 F 7.S). F. Traceable feed Emp. 40000 26000 14000 | 53.85). U Divisional Segment Margin 175000 144000 1000 F 0.577F workulgs. & is calculated as Flexible Budget varlance Flexible Budget ($) Las for Sales Revenue - 25000 25.54%. 451000 R PULSA li var. Expenses 2 10000 2 3198) 2 S1000 cont Margin = 15000 Fis) 2000ud . Traceable fixed Erp 14000 2 53.851 26 000 Deinsinal segment margin = 1000 2 0:547. 174000 2 based on this performance Report includes Both Revenue & Cadd data therefore their subunit must be a PROFIT center In such case Management should Investigate Traceable fired Expenses as its varance is Exceeding $2000 and exceeding 10% (Both criteria met)

First 4 requirements have been sequencially answered.

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