One subunit of

Speed

Sports Manufacturing Company had the following financial results last month:

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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 $3,100 or 11%?
4.	Should only unfavorable variances be investigated? Explain.

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Part 1

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.)

			Variance
Product	Actual	Budgeted	(U or F)
Direct materials	$21,500	$20,000
Direct labor	14,250	15,000
Indirect labor	29,250	25,000
Utilities	10,950	10,000
Depreciation	25,000	25,000
Repairs and maintenance	4,200	5,000
Total	$105,150	$100,000

Data table B D E 1 Speed Sports Manufacturing Company-Camping and Hiking Subunit 2 Monthly Performance Report 3 For the Month Variance 4 Actual Budgeted Variance * Percentage 5 Direct materials $ 21,500 $ 20,000 6 Direct labor 14,250 15,000 7 Indirect labor 29,250 25,000 8 Utilities 10,950 10,000 9 Depreciation 25,000 25,000 10 Repairs and maintenance 4,200 5,000 11 Total $ 105,150 $ 100,000 *Be sure to indicate whether each variance is favorable (F) or unfavorable (U)