One subunit of River Sports Company has the following financial results last month: Requirements 1. Complete the
Question:
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 this subunit?
3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $3,100 or 11%?
4. Should only unfavorable variances be investigated? Explain.
Transcribed Image Text:
Flexible Budget Flexible Budget t Variance (U or F Variance%* (U or F) RiverSports Subunit X Actual Direct labor. Indirect labor Utilities Depreciation Repairs and maintenance Total 15,000 26,000 12,000 15,500 7,500 $105,420 $101,000 14,235 29,275 13,170 15,500 6,315
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