Question: Requirement 1. Complete the performance evaluation report for the subunit. (Enter a variance for each account and select whether the variance is favorable or unfavorable.
Requirement 1. Complete the performance evaluation report for the subunit. (Enter a variance for each account and select whether the variance is favorable or unfavorable. Enter the variance percent as a percentage rounded to two decimalplaces, X.XX%.)
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| Actual | Flexible |
| Flexible Budget | |
| Subunit X | Results | Budget |
| Variance (F or U) | |
| Sales | $475,000 | $450,000 |
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| Variable Expenses | 266,000 | 250,000 |
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| Contribution Margin | $209,000 | $200,000 |
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| Traceable Fixed Expenses | 35,000 | 27,000 |
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| Divisional Segment Margin | $174,000 | $173,000 |
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| Requirement 2. Based on the data presented and your knowledge of the company, what type of responsibility center is this subunit? This performance report includes ; therefore, this subunit must be
Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $ 4 comma 000$4,000 and exceeding 10% (both criteria must be met)? Management should investigate the following: (Leave unused cells blank.)
Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate
favorable as well as unfavorable variances only favorable variances only unfavorable variances . Favorable expense variances
indicate that the budget was prepared correctly may indicate costs are being cut that might impact future operations result in greater profits to the company . Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances
are are not due to sales volume differences between budget and actual. Differences in sales volume are captured by the
flexible budget revenue center performance report sales volume variance, not the flexible budget variance . The flexible budget variance is due to
actual prices and costs varying from standards. sales volume variances . Requirement 6. Will management place equal weight on each of the variances exceeding $ 4 comma 000$4,000? Explain. Management will
not place as much weight on each of the variances which exceed $4,000 place equal weight on all variances place more weight on the variable expenses variance because
all variances have a signficant impact on the company's bottom line. they will consider the percentage change also. variable expenses are more important than any of the other items. Requirement 7. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this performance report a lead or a lag indicator? Explain. The performance report addresses the
customer financial internal business learning and growth perspective of the balanced scorecard.
Customer Financial Internal business Learning and growth performance measures tend to be
lag lead indicators. They typically
forcast future performance. measure the results of past decisions. Requirement 8. List one key performance indicator for the three other balanced scorecard perspectives. Make sure to indicate which perspective is being addressed by the indicators you list. Complete the following table to identify one key performance indicator for the three other balanced scorecard perspectives.
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