16. One subunit of Zoom Sports Company had the following financial results last month (Click the icon to view the financial results.) Read the requirements 18 Requirement 1. Complete the performance evaluation report for this subunit (round to three decimal places). (Enter a variance for each account and select whether the variance is unfavorable (U) or favorable (F). Enter the results as positive numbers. Enter the variance percents as a percentage to three decimal places, "XX.XXX%".) Zoom Sports Company-Team Sports Subunit Monthly Performance Report For the Month Variance Product Actual Budgeted Variance Percentage Sales $ 709.800 S 650,000 (1) % (8) Less: Variable expenses 419.250 406,250 Contribution margin $ 290550 S 243,750 (3) % (10) Less: Direct fixed expenses 13,050 12,500 (4) % (11) Segment margin $ 277,500 S 231,250 (5) % (12) Less: Common fixed expenses 44,250 31,250 $ 233.250 S 200,000 Operating income (7) % (14) Requirement 2. Based on the data presented, what type of responsibility center is this subunit? This performance report includes (15) therefore this subunit must be (16) Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $13,000 and exceeding 12% (both criteria must be met)? (If a box is not used in the table, leave the box empty: do not select a label.) (17) (18) (19) (20) Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate (21) - Favorable variances (22) - Management needs to evaluate (23) to determine the root cause of the variance. Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances (24) due to sales volume differences between budget and actual. Differences in sales volume are captured by the (25) The flexible budget variance is due to (26) - Requirement 6. Do you think management will place equal weight on each of the $13,000 variances? Explain Management will (27) Additionally, they may not place much weight on (28) because (29) - Requirement 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. The performance report addresses the (30) perspective of the balanced Scorecard. (31). performance measures tend to be (32) indicators. They typically (33) Requirement 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. Complete the following table to identify one key performance indicator for the three other balanced Scorecard perspectives. Key performance indicator (35) Balanced scorecard perspective (34) (36) (38) (37) (39) Are they lead or lag indicators? Explain. Each of these performance measures is a (40) - indicator which tend to (41) The performance indicators listed above are often better at (42) - 17: Data Table Zoom Sports Manufacturing Company-Team Sports Subunit Monthly Performance Report For the Month Actual Budgeted Variance* Variance Percentage* Sales S 709,800 $ 650,000 Less: Variable expenses 419,250 406,250 Contribution margin S 290,550 $ 243,750 Less: Direct fixed expenses 13,050 12,500 Segment margin S 277,500 $ 231,250 44,250 31,250 Less: Common fixed expenses $ 233,250 $ 200,000 Operating income "Be sure to indicate whether each variance is favorable (F) or unfavorable (U). 18: Requirements 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 $13,000 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 $13,000 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 (1) (3) O OF OU (2) O OF OU O OF OU (4) o OF OU (5) o OF OU (6) O OF OU (7) O OF OU (8) O OF (9) O OF OU OU (10) (11) O (12) (14) OF OF (13) OF OU (15) O both revenue and cost data, O only cost data, O only revenue data, OU OU OU OU O Sales (16) O a cost center. O an investment center O a profit center O a revenue center. (17) O O Common fixed expenses Contribution margin Direct fixed expenses O Sales (19) O Sales (18) O Common fixed expenses Contribution margin O Direct fixed expenses O Common fixed expenses O Contribution margin Direct fixed expenses Sales (20) O O Common fixed expenses Contribution margin O Direct fixed expenses (21) O favorable as well as unfavorable variances. O only favorable variances. O only unfavorable variances. (22) O may be due to bookkeeping or budgeting errors. result in greater profits to the company indicate that the budget was prepared correctly (23) O large favorable as well as unfavorable variances O only favorable variances O only unfavorable variances (24) O O O are are not could be (25) O flexible budget O revenue center performance report. O volume variance, not the flexible budget. (26) O something other than volume O volume variances. (27) O not place as much weight on the variable expenses variance because it does not exceed 10% O place equal weight on both variances O place more weight on the variable expenses variance (28) O cost of sales variance O the common fixed expenses O the revenue variance O the volume variance (29) O O O this is a direct cost of the subunit this is not a direct cost of the subunit. the overall variance is insignifigant (30) O O O O customer financial internal business learning and growth (32) O lag O lead (33) O forcast future performance. O measure the results of past decisions. (31) O Customer O Financial O Internal business O Learning and growth O Investment perspective Learning and growth perspective (34) O O Customer perspective Financial perspective O Internal business perspective (35) O customer satisfaction ratings number of new products developed O hours spent training employees O return on investment sales revenue growth (36) O O Customer perspective Financial perspective Internal business perspective 0000 0000 0000 0000 0000 000 Investment perspective Learning and growth perspective O return on investment O sales revenue growth (37) O O customer satisfaction ratings O number of new products developed O hours spent training employees (38) O Customer perspective O Financial perspective O Internal business perspective Investment perspective Learning and growth perspective O return on investment O sales revenue growth (40) O O lag lead (39) O O customer satisfaction ratings O number of new products developed hours spent training employees (41) O forecast future performance. O measure the results of past decisions (42) O projecting future performance than past financial data, O providing real time informations O reporting on past financial data than projecting future performance