One subunit of Bacall Sports Manufacturing Company had the following financial results last month: Requirements 1. Complete
Question:
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 $2,500 or 12.5%?
4. Should only unfavorable variances be investigated? Explain.
Transcribed Image Text:
Bacall Sports Manufacturing Company-Water Sports Subunit Monthly Performance Report For the Month Actual Budgeted Variance Percentage Variance* 6 Direct materjals 7 Direct labor 16,095 $ 15,240 29,200 15,000 16,000 25,000 15,000 24,000 7,500 102,500 8 Indirect labor 9 Utilities 16,395 24,000 6,285 107,215 10 Depreciation 11 Repairs and maintenance 12 Total 13
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