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

Requirements
1. Complete the performance evaluation report for this subunit (round to four decimals).
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 $ 2,900 or 13%?
4. Should only unfavorable variances be investigated? Explain.

Transcribed Image Text:

Pacific Sports Manufacturing Company-Water Sports Subunit Monthly Performance Report For the Month 4 5 Product Actual Budgeted Variance Variance Percentage 6 Direct materials 7 Direct labor 8 Indirect labor 9 Utilities 10 Deprecdation 11 Repairs and maintenance 12 Total 13 13,400 $ 18,940 35,220 9,555 26,125 8 430 12,500 20,000 30,000 8,750 26,125 10,000 1,670 $107,375