One subunit of BlueHill Company had the following financial results last month: Flexible Budget Variance % Variance

One subunit of BlueHill 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 centre is this subunit?

3. Which items should be investigated if part of management€™s decision criteria is to investigate all variances exceeding $3,000 or 10%?

4. Should only unfavourable variances be investigated? Explain.

Transcribed Image Text:

Flexible Budget Variance % Variance" (U or F) Flexible BlueHil-Subunit × Actual Budget (U or F) $ 21,500 $ 20,000 Direct materials. Direct labour 14,250 15,000 Indirect labour 29,250 25,000 10,950 Utilities . 10,000 Depreciation... Repairs and maintenance. 25,000 25,000 4,200 5,000 Total... $105,150 $100,000 * Flexible budget variance - Flexible budget