QUESTION (#4): FINANCIAL RESULTS: REQUIREMENTS: REQUIREMENT 1 & 2: REQUIREMENT 3 & 4:

One subunit of Speed Sports Company had the following financial results last month: (Click the icon to view the financial results.) Read the requirements. Flexible Budget Variance (F or U) % Variance (F or U) Speed-Subunit X Direct Materials Direct Labor Actual Results Flexible Budget $ 29,100 $ 27,300 13,800 14,500 26,500 23,500 12,800 11,900 29,000 29,000 4,200 5,100 Indirect Labor Utilities Depreciation Repairs and Maintenance $ 115,400 $ 111,300 Total 1. Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage of the budgeted amount 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 the variance percent as a percentage of the budgeted amount rounded to two places. (Enter a variance for each account as a positive number, 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 For U box blank. Enter the variance percent as a percentage rounded to two decimal places, X.XX%.) Flexible Budget Variance (F or U) % Variance (F or U) Speed - Subunit X Direct Materials Direct Labor Indirect Labor Utilities Depreciation Actual Flexible Results Budget $ 29,100 $ 27,300| 13,800 14,500 26,500 23,500 12,800 11,900 29,000 29,000 4,2005 ,100 $ 115,400 $ 111,300 Repairs and Maintenance Total Requirement 2. Based on the data presented, what type of responsibility center is this subunit? What type of responsibility center is this unit? Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $2,500 or 10%? (lf a box is not used in the table, leave the box empty.) Requirement 4. Should only unfavorable variances be investigated? Favorable variances nvestigated to