E$-$M:$7-23$ Using responsibility reports to evaluate cost, revenue, and profit centers

The accountant for a subunit of Speed Sports Company went on vacation before completing the subunit's monthly responsibility report. This is as far as she got:

Speed$-$Subunit X

Revenue by Product

Actual

Results

Variance

Flexible Budget Flexible Sales Volume

Budget

Variance

Static

Budget

Downhill$-$RI

$321,000$

$($a$)$

$($b$)$

$ $17,000$ F

$

$295,000$

Downhill$-$RII

$151,000$

$($c$)$

$ $161,000$

$($d$)$

$145,000$

Cross$-$EXI

$285,000$

$ $3,000$ U

$288,000$

$($e$)$

$303,000$

Cross$-$EXII

$259,000$

$($f$)$

$255,000$

$16,500$ U

$271,500$

Snow$-$LXI

$425,000$

$2,000$ F

$($g$)$

$($h$)$

$404,000$

Total

$ $1,441,000$

$($k$)$

$ $1,418,500$

$7\mathrm{.}3-60$ Full Alternative Text L

Requirements

$1.$ Complete the responsibility report for this subunit.

$2.$ 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 $$12,000?$