The accountant for a subunit of BlueHill Company went on vacation before completing the subunits monthly performance

The accountant for a subunit of BlueHill Company went on vacation before completing the subunit’s monthly performance report. This is as far as she got:

Requirements
1. Complete the performance evaluation report for this subunit.

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 $15,000? Interpret your results. (What could cause these variances? What impact might these variances have on company inventory levels and operations?)

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Flexible Budget Variance Static (Master) Budget Sales Volume Flexible BlueHil-Subunit X Revenue by Product Actual Variance Budget Downhill.. Model RI.. Model RII Cross-Country.. Model EXI. Model EXII. $ 326,000 $20,000 (F) $ 300,000 155,000 $165,000 150,000 $2,000 (U) 283,000 285,000 300,000 17,500 (U) 245,000 252,000 262,500 Snowboard... Model LXI Total.... 425,000 5,000 (F) 400,000 $1,441,000 $1,412,500