One subunit of Accel Sports Company had the following financial results last month:

Actual

Flexible Budget

% Variance

AccelSubunit X

Results

Flexible Budget

Variance (F or U)

(F or U)

Direct Materials

$28,500

$26,600

Direct Labor

13,600

14,400

Indirect Labor

27,000

23,900

Utilities

12,500

11,600

Depreciation

26,000

26,000

Repairs and Maintenance

4,600

5,400

Total

$112,200

$107,900

Requirements

1.

Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage rounded to two 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 management's decision criteria is to investigate all variances exceeding $2,500 or 10%?

4.

Should only unfavorable variances be investigated? Explain.

Requirement 1. Complete the performance evaluation report for this subunit. (Enter a variance for each account and select whether the variance is favorable [F] or unfavorable [U]. For any zero variances, enter a 0 in the variance column and then leave the F or U box blank. Enter the variance percent as a percentage rounded to two decimal places, X.XX%.)

	Actual	Flexible	Flexible Budget
Accel - Subunit X	Results	Budget	Variance (F or U)
Direct Materials	$28,500	$26,600
Direct Labor	13,600	14,400
Indirect Labor	27,000	23,900
Utilities	12,500	11,600
Depreciation	26,000	26,000
Repairs and Maintenance	4,600	5,400
Total	$112,200	$107,900