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

(Data in Picture)

REQUIREMENTS -

1. Complete the performance evaluation report for this subunit.

2.Based on the data presented, what type of responsibility center is the subunit?

3.Which items should be investigated if part of the management's decision criteria is to investigate all variances exceeding $ 3,000 or 10.5 % ?

4.Should only unfavorable variances be investigated? Explain.

Requirement 1. Complete the performance evaluation report for this subunit. (Enter the variances as positive numbers. Round the variance percentages to the nearest hundredth percent, X.XX%. Label each variance as favorable (F) or unfavorable (U). If the variance is 0, make sure to enter in a "0". A variance of zero is considered favorable.)

B D E 2 1 Contest Sports Manufacturing Company-Toning and Accessories Subunit 2 Monthly Performance Report 3 For the Month Variance 4 Actual Budgeted Variance Percentage 5 Direct materials $ 13.400 $ 12,500 6 Direct labor 18,940 20,000 7 Indirect labor 35,220 30,000 8 Utilities 9,555 8.750 9 Depreciation 26.125 26,125 10 Repairs and maintenance 8,430 10,000 11 Total $ 111,670 $ 107 375 "Be sure to indicate whether each variance is favorable (F) or unfavorable (U). Variance (U or F) Product Actual Budgeted 13,400 $ 12,500 Direct materials $ $ Direct labor 20.000 Indirect labor Utilities 18,940 35,220 9,555 26.125 8.430 30.000 8.750 26.125 10.000 Depreciation Repairs and maintenance 111, 670 $ 107 375 Total