One subunit of Hazelton Sports Company has 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 the subunit?
3. Which items should be investigated if part of the management's decision criteria is to investigate all variances exceeding $2,800 or 10.5%?
4. Should only unfavorable variances be investigated? Explain.

Transcribed Image Text:

Hazelton Water Sports Subunit Direct materials Direct labor Indirect labor Utilities Depreciation Repairs and maintenance Total Budget $16,140 $15,000 20,000 25,000 12,000 19,000 4,000 $99,940 $95,000 Actual Budget Variance (U or F) Variance %"(U or F) 19,020 29,300 13,110 19,000 3,370