1. Complete the performance evaluation report for this subunit (round to three 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 the management's decision criteria is to investigate all variances equal to or exceeding $9,500 and exceeding 12% (both criteria must be met)? 4. Should only unfavorable variances be investigated? Explain. 5. Is it possible that the variances are due to a higher than expected sales volume? Explain. 6. Do you think management will place equal weight on each of the $9,500 variances? Explain. 7. Which balanced Scorecard perspective is being addressed through this performance report? In your opinion. is this performance report a lead or lag indicator? Explain. 8. Give one key performance indicator for the other three balanced Scorecard perspectives. Indicate which perspective is being addressed by the indicators you list. Are they lead or lag indicators? Explain. N 2 A B C D E Winter Sports Manufacturing Company-Team Sports Subunit Monthly Performance Report 3 For the Month Variance 4 Actual Budgeted Variance Percentage 5 Sales $ 486,900 $ 450,000 6 Less: Variable expenses 259,500 250,000 7 Contribution margin $ 227,400 $ 200,000 8 Less: Direct fixed expenses 51,750 50,000 9 Segment margin $ 175,650 $ 150,000 10 Less: Common fixed expenses 40,750 31,250 $ 134,900 $ 118,750 11 Operating income "Be sure to indicate whether each variance is favorable (F) or unfavorable (U). Requirement 1. Complete the performance evaluation report for this subunit (round to three decimal places) Enter variance for each account and select whether the variance in una numbers. Enter the variance percents as a percentage to three decimal lacus. *XXXXXX Winter Sports Company-Team Sports Subunit Monthly Performance Report For the Month Variance Product Actual Budgeted Variance Percentage Sales $ 486.900 S 450,000 Less: Variable expenses 259,500 250,000 Contribution margin $ 227 400 5 200,000 Less: Direct fixed expenses 51.750 50,000 Segment magin $ 175,650 $ 90 150.000 40.750 31250 Less Common fixed expenses $ 134.900 $ 118.750 Operating income Requirement 2. Based on the data presented what type of responsibility contribut? This performance report indudes therefore his suburt must be Requirement 3. Which one should be investigated part of management's decision is to investigate all variances equal to or exceeding 50 500 and exceeding on criteria must be median input God is not used in the table leave the outfit omoly, do not select a fabel) Requirement 4. Should only unfavorable variances be investigated? Explain Managers should investigate Favorable variances to determine the root cause of the variano Management de to evaluate The bed Requirements. Is it possible that the variances are due to a higher than expected sales me? Explan The flexible budget variances due to ales volume dierences between budget and actum Differences in sales volume are captured by the variance is due to Requirement. Do you think management will place equal weight on each of the $9.500 variances? Explain Management wil Additionally, they may not place much wicht on Dec Requirement 7. Which balanced teorecard perspective is being addressed through a performance report? in your opinion, is the performance report a od or log indicator? Explain. The performance report addresses the perspective of the balanced Scorecard. performance measures and to be indicators. They typically Requirement 8, Give one kay performance Indicate for the other the balanced scorecard perspectives Indicate which perspective is being addressed by the dicto you . Are they leader og deres? Requirement, Give one way performance Indicator for the other the anced corect perspectives income with perspective is being addressed by na ndiomon you lat. Me hay fear or lag nie? Explain Complete the following table to milyoney performance Indicator for the other balanced Scorecard perspectives Balanced Scorecard perspective Key performance indicator Are they lead or log indicators? Explain Each of these performance measuresi indicator which tend to The perfomance indicators above are abert
