One subunit of Speed Sports 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 centre 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 11%?
4. Should only unfavourable variances be investigated? Explain.

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Flexible Budget Flexible Variance %Variance Speed-Subunit X ActualBudget (U or F (U or F) Indirect labour. Utilities 13,265 14,000 23,380 20,000 15,000 16,455 s and maintenance.. 4,205 5,000 $100,485 $96,250 Total