Requirements

1.	Complete the performance evaluation report for this subunit.
2.	Based on the data presented, what type of responsibility center is the subunit?
3.	Which items should be investigated if part of the management's decision criteria is to investigate all variances exceeding $2,700 or 12%?
4.	Should only unfavorable variances be investigated? Explain.

Product Actual Budgeted Variance

(U or F)

Direct materials. $21,480. $20,000

Direct labor 16,660. 17,500

Indirect labor. 28,140. 24,000

Utilities 10,940. 10,000

Depreciation. 21,800 21,800

Repairs 4,195. 5,000

and maintenance

Total $103,215 $98,300