One subunit of Harris Sports Company had the following financial results last month:

Requirements
1. Complete the performance report for this subunit. Enter the variance percent as a percentage of the budgeted amount rounded to two decimal places.
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 $2,500 or 10%?
4. Should only unfavorable variances be investigated? Explain.

Transcribed Image Text:

Actual Flexible Flexible Budget Variance (F or U) % Variance Harris-Subunit X Results Budget (F or U) $ 28,000 $ 25,900 Direct Materials Direct Labor 13,000 13,800 Indirect Labor 26,400 23,100 Utilities 12,300 11,300 Depreciation 25,000 25,000 4,600 5,600 Repairs and Maintenance $ 109,300 $ 104,700 Total