One subunit of Xtreme 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 $28,200 26,100 14,200 23,500 11,600 26,000 5,000 110,900 106,400 Actual Flexible Budget Variance (F or U) % Variance (F or U) Xtreme-Subunit X Direct Materials Direct Labor Indirect Labor Utilities Depreciation Repairs and Maintenance Total Results 13,500 26,500 12,700 26,000 4,000