One subunit of Contest 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 $2,900 or 13%?
4. Should only unfavorable variances be investigated? Explain.

Transcribed Image Text:

D. Contest Sports Manufacturing Company-Water Sports Subunit Monthly Performance Report For the Month Variance Percentage* Actual Variance* Budgeted 6 Direct materlals 7 Direct labor 8 Indirect labor 9 Utilities 10 Depreciation 12,930 $ 12,000 14,000 20,000 15,000 30,250 5,000 96,250 13,265 23,380 16,455 30,250 4,205 100,485 S 11 Repairs and maintenance 12 Total 13