Question: PLEASE SHOW WORK AND EXPLANATION NOT REAL NUMBER THIS IS AN EXAMPLE FOR ANSWER FORMAT!!!!!! Requirement 1. Complete the responsibility report for this subunit. long
PLEASE SHOW WORK AND EXPLANATION
NOT REAL NUMBER THIS IS AN EXAMPLE FOR ANSWER FORMAT!!!!!!
Requirement 1. Complete the responsibility report for this subunit.
long dash
| Static Budget | $ 306,000 |
| +/- Favorable/(Unfavorable) Sales Volume Variance | 18,000 |
| Flexible Budget | $ 324,000 |
| PikeSubunit X | Actual | Flexible Budget | Flexible | Sales Volume | Static | ||
| Revenue by Product | Results | Variance | Budget | Variance | Budget | ||
| Downhill-RI | $ 330,000 | $ 6,000 | F | $ 324,000 | $ 18,000 | F | $ 306,000 |
Next, solve the missing variance amounts for the next product
| PikeSubunit X | Actual | Flexible Budget | Flexible | Sales Volume | Static | ||
| Revenue by Product | Results | Variance | Budget | Variance | Budget | ||
| Downhill-RI | $ 330,000 | $ 6,000 | F | $ 324,000 | $ 18,000 | F | $ 306,000 |
| Downhill-RII | 153,000 | 9,000 | U | 162,000 | 16,000 | F | 146,000 |
Calculate the sales volume variance amount for the Cross-EXI. Determine whether the amount is a favorable or unfavorable variance.
| PikeSubunit X | Actual | Flexible Budget | Flexible | Sales Volume | Static | ||
| Revenue by Product | Results | Variance | Budget | Variance | Budget | ||
| Downhill-RI | $ 330,000 | $ 6,000 | F | $ 324,000 | $ 18,000 | F | $ 306,000 |
| Downhill-RII | 153,000 | 9,000 | U | 162,000 | 16,000 | F | 146,000 |
| Cross-EXI | 283,000 | 1,000 | U | 284,000 | 16,000 | U | 300,000 |
Calculate the flexible budget variance amount for the Cross-EXII. Determine whether the amount is a favorable or unfavorable variance.
| PikeSubunit X | Actual | Flexible Budget | Flexible | Sales Volume | Static | ||
| Revenue by Product | Results | Variance | Budget | Variance | Budget | ||
| Downhill-RI | $ 330,000 | $ 6,000 | F | $ 324,000 | $ 18,000 | F | $ 306,000 |
| Downhill-RII | 153,000 | 9,000 | U | 162,000 | 16,000 | F | 146,000 |
| Cross-EXI | 283,000 | 1,000 | U | 284,000 | 16,000 | U | 300,000 |
| Cross-EXII | 250,000 | 8,000 | F | 242,000 | 19,500 | U | 261,500 |
To complete the missing information for the snow-LXI model, we first need to calculate the flexible budget amount. We can manipulate the flexible budget variance formula to calculate the flexible budget using the table below. (Leave unused cells blank.)
| Actual | $ 420,000 |
| + Unfavorable Flexible Budget Variance |
|
| - Favorable Flexible Budget Variance | (5,000) |
| Flexible Budget | $ 415,000 |
Now, using the amount you calculated above, complete the missing information for the snow-LXI model.
| PikeSubunit X | Actual | Flexible Budget | Flexible | Sales Volume | Static | ||
| Revenue by Product | Results | Variance | Budget | Variance | Budget | ||
| Downhill-RI | $ 330,000 | $ 6,000 | F | $ 324,000 | $ 18,000 | F | $ 306,000 |
| Downhill-RII | 153,000 | 9,000 | U | 162,000 | 16,000 | F | 146,000 |
| Cross-EXI | 283,000 | 1,000 | U | 284,000 | 16,000 | U | 300,000 |
| Cross-EXII | 250,000 | 8,000 | F | 242,000 | 19,500 | U | 261,500 |
| Snow-LXI | 420,000 | 5,000 | F | 415,000 | 20,000 | F | 395,000 |
Calculate the total of each column. Remember the variance totals are the net of the favorable and unfavorable variances.
| PikeSubunit X | Actual | Flexible Budget | Flexible | Sales Volume | Static | ||
| Revenue by Product | Results | Variance | Budget | Variance | Budget | ||
| Downhill-RI | $ 330,000 | $ 6,000 | F | $ 324,000 | $ 18,000 | F | $ 306,000 |
| Downhill-RII | 153,000 | 9,000 | U | 162,000 | 16,000 | F | 146,000 |
| Cross-EXI | 283,000 | 1,000 | U | 284,000 | 16,000 | U | 300,000 |
| Cross-EXII | 250,000 | 8,000 | F | 242,000 | 19,500 | U | 261,500 |
| Snow-LXI | 420,000 | 5,000 | F | 415,000 | 20,000 | F | 395,000 |
| Total | $ 1,436,000 | $ 9,000 | F | $ 1,427,000 | $ 18,500 | F | $ 1,408,500 |
Requirement 2. Based on the data presented, what type of responsibility center is this subunit?
E24-16 (similar to) The accountant for a subunit of Xtreme Sports Company went on vacation before completing the subunit's monthly responsibility report. This is as far as she got: (Click the icon to view the responsibility report.) Read the requirements. Requirement 1. Complete the responsibility report for this subunit. Xtreme-Subunit X Actual Flexible Budget Flexible Sales Volume Static Revenue by Product Results Variance Budget Variance Budget $ 304,000 Downhill-RI $ 328,000 19,000 F Xtreme-Subunit X Actual Flexible Budget Flexible Sales Volume Static Revenue by Product Results Variance Variance Budget Downhill-RI 328,000 Budget (b) 165,000 $ 19,000 F (a) (c) $ Downhill-RII 158,000 Cross-EXI 283,000 $ 4,000 U 287,000 304,000 150,000 303,000 270,500 406,000 1,433,500 Cross-EXII (f) 252,000 (d) (e) 18,500 U (h) (k) 257,000 427,000 1,453,000 Snow-LXI 3,000 F (g) $ (0) 0) $ Total Requirements 1. 2. Complete the responsibility report for this subunit. Based on the data presented, what type of responsibility center is this subunit? Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $12,000? 3. Print Done
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