One subunit of Racer Sports Company had the following financial results last month: EEB (Click the icon to view the financial results.) Read the requirements 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.".xxx%*) Racer Sports Company-Team Sports Subunit Monthly Performance Report For the Month Variance Product Actual Budgeted Variance Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Segment margin Less: Common fixed expenses Operating income Requirement 2. Based on the data presented, what type of responsibility center is this subunit? This performance report includes 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 709,800 650,000 406,250 290,550243,750 12,500 277,500231,250 31,250 233,250 200,000 419,250 13,050 44,250 therefore this subunit must be exceeding 16% (both criteria must be met)? (If a box is not used in the table, leave the box empty: do not select a label.) Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate to evaluate Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variances Favorable variances Management needs 7 to determine the root cause of the variance. due to sales volume differences between budget and actual. Differences in sales volume are captured by the flexible budget variance is due to Requirement 6. Do you think t will place equal weight on each of the $13,000 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 ndicator? Explain. The performance report addresses the indicators. They typicalhy Requirement 8. Give one key performance indicator for the other three balanced scorecard perspectives. Indicate which perspective is being addressed by the perspective of the balanced scorecard. performance measures tend to be 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. Balanced scorecard perspective Key performance indicator Are they lead or lag indicators? Explain. Each of these performance measures isaindicator which tend to | The performance indicators listed above are often better at Data Table Contest Sports Manufacturing Company-Team Sports Subunit Monthly Performance Report For the Month Actual Budgeted Variance Variance Percentage Sales Less: Variable expenses Contribution margin Less: Direct fixed expenses Segment margin Less: Common fixed expenses Operating income Be sure to indicate whether each variance is favorable (F) or unfavorable (U) $ 486,900450,000 250,000 227,400200,000 51.75050,000 175,650150,000 31,250 $134,900 118,750 259,500 40,750 one Print Done 40,750 31,250 Less: Common fixed expenses Operating income Requirement 2. Based on the data presented, what type of responsibility center is this subunit? This performance report includes Requirement 3. Which items sho 134,900118,750 | therefore this subunit must be ment's decision criteria is to investigate all variances equal to or able, leave the box empty: do not select a label.) exceeding 10% (both criteria must both revenue and cost data, only cost data, only revenue data, This performance report includes therefore this subunit must be Requirement 3. Which items should be investigated if part of management's decision criteria is exceeding 10% (both criteria must be met)? (if a box is not used in the table, leave the box empty al to or ex a cost center. an investment center. a profit center. a revenue center. Requirement 4. Should only untavorable varlances be Investigatea? Explain. Managers should investigate Favorable variances to evaluate Requirement 5. Is it possible The flexible budget variances ot cause of the variance. favorable as well as unfavorable variances only favorable variances only unfavorable variances. sales volume? Explain. udget and actual. Differences in sales volume are capt Favorable variances Management needs V to determine the root cause of th that the variances are due to a higher-than-expected sales volum due to sales volume differences between budget and a may be due to bookkeeping or budgeting errors. result in greater profits to the company. indicate that the budget was prepared correctly. The flexible budget variance is due to Requirement 4. Should only unfavorable variances be investigated? Explain. Managers should investigate Favorable variances to evaluate Requireme The flexible l Vto determine the root cause of the variance. an-expected sales volume? Explain. large favorable as well as unfavorable variances ces between budget and actual. Differences in sales volume are capt ce is due to only favorable variances only unfavorable variances Requireme on each of the $9,500 variances? Explain Requirement 5. Is it possible that the variances are due to a higher-than-expected sales volume? Explain. The flexible budget variancesdue due to sales volume differences between budget and actual. Differences in sales volume are capt flexible budget variance is due to Requirement 6. Do you thin place equal weight on each of the $9,500 variances? Explain. are not Management will Additionally, they mayr could be 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 capt The flexible budget variance is due to e equal weight on each of the $9,500 variancesExplain. flexible budget. revenue center performance report. volume variance, not the flexible budget. Additionally, they may ective is being addressed through this performance report? In your opinion, is this pert 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 capt The flexible budget variance is due to Requirement 6. Do you think management will place equal weight on each of th something other than volume. Management will ally, they may volume variances. V because Requirement 7. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this pert indicator? Explain. The flexible budget variances due to sales volume differences between budget and actual. Differences in sales volume are capt The flexible budget variance is due to Requirement 6. Do you think management will place equal weight on each of the $9,500 variances? Explain. Management will Additionally, they may not place as much weight on the variable expenses variance because it does not exceed 10% place equal weight on both variances. inion IS is this perf Requirement 7.v indicator? Explain The performance place more weight on the variable expenses variance. indicators. They typicainy performanc Management will Additionally, they may because card perspective is being addressed through this performance report? In your opinion, is this pert cost of sales variance the common fixed expenses the revenue variance perspective of the balanced scorecard. performand the volume variance ance indicator for the other three balanced scorecard perspectives. Indicate which perspective is b Requirement 6. Do you think management will place equal weight on each of the $9,500 variances? Explain. Management will Additionally, they V because Requirement 7. Which balanced score s performance report? In your opinion, is th indicator? Explain. The performance report addresses the indicators. They typically this is a direct cost of the subunit this is not a direct cost of the subunit. the overall variance is insignifigant perfo scorecard indicator? Explain. The performance report addresses the indicators. They typically Requirement 8. Give one key perform perspective of the balanced scorecard. perfor customer ree balanced scorecard perspectives. Indicate which perspecti indicators you list. Are they lead or lagi Complete the following table to identify Balanced scorecard perspective financial or for the three other balanced scorecard perspectives. internal business learning and growh ndicator Requirement 7. Which balanced scorecard perspective is being addressed through this performance report? In your opinion, is this pert indicator? Explain. The performance report addresses the indicators. They typically Requirement 8. Give one key performance indicator for the other three balanced scorecard perspect perspective of the balanced scorecard. performanc Customer Financial Internal business Learning and growth e is b indicators you list. Are they lead or lag indicators? Explain. Complete the following table to identify one key performance indicator for the three other balanceds Balanced scorecard perspective Key performance indicator ndlcdtoff Expldi perspective of the balanced scorecard. Y performanc The performance report addresses the indicators. They typically Requirement 8. Give on alanced scorecard perspectives. Indicate which perspective is b tors you list.Are the forcast futurepeormance. Complete the following ta measure the results of past decisions. for the three other balanced scorecard perspectives. Balanced scorecard perspective Key performance indicator Complete the tollowing table to ldentily one key pertormance Indlcator Tor the three other balanced scorecara perspectives. Balanced scorecard perspective Key performance indicator Are they lead or lag indicators? Explain V The performance Each of these performance measis indicator which tend to better at lag lead Are they lead or lag indicators? Explain. Each of these performance measures is aindicator which tend to better at Y The performance indicat forecast future performance. measure the results of past decisions Choose from any list or enter any number in the input fields and then continue to the next question Are they lead or lag indicators? Explain Each of these performance measures is a l better at indicator which tend to | The performance indi projecting future performance than past financial data. providing real time informations. reporting on past financial data than projecting future performance. choose fr e to the next