One subunit of Atlantic Sports Manufacturing Company had the following financial results last month:

Requirements
1. Complete the performance evaluation report for this subunit (round to four decimals).
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 $ 3,000 or 12.5%?
4. Should only unfavorable variances be investigated?Explain.

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Atlantic Sports Manufacturing Company-Water Sports Subunit Monthly Performance Report For the Month 2 Actual BudgetedVarace Variance Percentage. Product 6 Direct materials 7 Direct labor 8 Indirect labor 9 Utilities 10 Depreciation 11 Repairs and maintenance 21,480 S 16,660 28,140 10,940 21,800 20,000 17,500 24,000 10,000 21,800 5,000 4.195 12 Total 13