Data Table Zoom Sports Manufacturing Company-Team Sports Subunit Monthly Performance Report For the Month Variance Variance Percentage* Actual Budgeted $ $ Sales 545,500 500,000 387,000 375,000 Less: Variable expenses Contribution margin $ 158,500 125,000 10,380 10,000 Less: Direct fixed expenses Segment margin $ 148,120 115,000 52,000 40,000 Less: Common fixed expenses 75,000 96,120 Operating income *Be sure to indicate whether each variance is favorable (F) or unfavorable (U). Print Done One subunit of Zoom Sports Company had the following financial results last month: EClick the icon to view the financial results.) Read the requirements Requirement 1. Complete the perfomance 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 s 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 Budgeted Percentage Product Actual Variance Sales 545,500 500,000 % 387,000 375,000 Less: Variable expenses Contribution margin $ 158.500 125,000 10.380 10.000 Less: Direct fixed expenses % Segment margin 148,120 115,000 52 000 40,000 Less: Common fixed expenses % 96.120 75,000 Operating income One subunit of Zoom Sports Company had the following financial results last month: EClick the icon to view the financial results.) Read the requirements. Requirement 2. Based on the data presented, what type of responsibility center is this subunit? therefore this subunit must be This performance report includes Requirement 3. Which items should leave o or exceeding $12,000 and exceeding 12 % (both criteria must be met)? (If a box is not upaensa label.) box empty; do not selecta management's decision criteria is to investigate all variances equal the tabl Requirement 4. Should only unfavorable variances be investigated? Explain. Favorable variances Management needs to evaluate Managers should investigate determine the root cause of the variance. V Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. due to sales volume differences between budget and actual. Differences in sales volume are captured by the The flexible budget The flexible budget variances variance is due to Requirement 6. Do you think management will place equal weight on each of the $12,000 variances? Explain. Management will Additionally, they may not place much weight on because 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. perspective of the balanced scorecard. performance measures tend to be indicators. They typically The performance report addresses the 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 Balanced scorecard perspective lag indicators? Explain. Are they lead The performance indicators listed above are often better at indicator which tend to Each of these performance measures is a
