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

Requirements
1. Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage 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.

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Flexible Budget % Variance Actual Flexible Budget Variance (F orU) F or U) Mountain Subunit X Direct Materials Direct Labor Indirect Labor Utilities 28,500 13,400 26,200 12,100 26,000 4,000 110,200 $ 26,400 14,100 22,700 11,100 26,000 4,900 105,200 Repairs and Maintenance Total