DC Operating expenses Service department costs Requirement 4. Should only unfavourable variances be investigated? Explain Managers should investigate favourable as well as unfavourable variances Favourable variances may be due to bookkeeping or budgeting errors Management needs to evaluate largo favourable as well as unfavourable variances 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 due to sales volume differences between budget and actual Differences in sales volume are captured by the variance is due to Help me solve this Etext pages Get more help Cle Type here to search o BI 9 4C $ % 8 3 4 5 6 7 8 9. - x Financial results 2 Flexible Budget Percentage Variance (U Variance (u or) or F) vourate Flexible Budget $ 500,000 375,000 $ 125,000 10,000 Adventure Sports--Subunit X Actual Sales .... $ 545,500 387,000 Cost of goods sold Gross margin $ 158,500 10,380 Operating expenses Operating income before service department charges $ 148,120 Service department charges 52,000 (allocated). 5 96.120 Operating income "Flexible budget vanance/Flexible budget $ 115,000 40.000 $ 75,000 Print Done Get more help O II 23 * hp 40 One subunit of Adventure Sports Company had the following financial results last month DI! Click the icon to view the financial results.) Requirements GREED Requirement 1. Complete the performance evaluation report for the subunit. (Enter a variance for each account, and select whether the numbers. Enter the variance percentages rounded to three decimal places, X.XXX%) Flexible Budget Percentage Flexible Variance Variance Adventure Sports -Subunit X Actual Budget (U or F) (U or F) Sales 5 545,500 $ 500,000 45500 F 9.10% F 387.000 375,000 12000 Cost of goods sold U 320 U Gross margin $ 158 500 $ 125,000 33500 F 2680 % 10,380 Operating expenses 10,000 380 U Operating income before service department charges $ 148,120 5 115,000 33120 F 28 80 Service department charges (allocated) 52.000 40.000 12000 F 30.00% U- $ 96 120 $ 75,000 Operating income 21120 F 28.16 380 % Help me solve this Etext pages Get more help Type here to search O Pest 2 hip a # $ A 2 3 4 96 5 6 7 8 Q w E LL R T U Operating expenses Service department Requirement 4. Should only Managers should investigate targeourable as well as as be investigated? Explain unfavourable variance Favourable variances may be due to bookkeeping or budgeting and Management needs to annot to determine the root cause of the variance could be due to a higher than expected sales volume? Explain how to sales volante diferences between budget and actorences in sales volume wo captured by the Requirements poble The fivit budget variances Varance is due to Help me solve this Etext pages Get more help Clearan 5:40 Type here to search o ! 4C AGAING flexible budget may be due to bookkeeping or budgeting errors revenue centre performance report sales volume variance, not the flexible budget plain Differences in sales volume are captured by the The flexible budget Cleara # 2 5:49 PM 2022-03-17 4C AGA ENG (hp Operating expenses Service department costs Requirement 4. Should only unfavourable variances be investioated? Explain Managers should variances Favourable variances may be due to bookkeeping or budgeting errors Management laege favourable a the root cause of the variance sales volume variances Requirement 5. is of-than expected sales volume? Explain something other than sales volume The le budget Wences between budget and actual Diferences in sales volume are captured by the variance is due to Help me solve this Etext pages Get more help U Type here to search 2 13 hp