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

Requirements
1. Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage 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.

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Flexible Budget Flexible Variance % Variance Mountain-Subunit X Actual Budget (U or F) (U or F) $ 28,500 26,400 Direct materials 13,400 26,200 Direct labor 14,100 22,700 11,100 Indirect labor Utilities 12,100 26,000 Depreciation Repairs and ma intenance 26,000 4,000 $ 110,200 4,900 $ 105,200 Total