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The accountant for a subunit of Awesome Sports Company went on vacation before completing the subunit's monthly responsibility report. This is as far as she
The accountant for a subunit of Awesome Sports Company went on vacation before completing the subunit's monthly responsibility report. This is as far as she got: (Click the icon to view the responsibility report.) Read the requirements. $ Requirement 1. Complete the responsibility report for this subunit. Awesome Subunit X Actual Flexible Budget Flexible Sales Volume Revenue by Product Results Variance Budget Variance Downhill-RI $ 323,000 ] $ 17,000 F Downhill-RII 151,000 162,000 Cross-EXI 288,000 4,000 U 292,000 Cross-EXII 257,000 248,000 20,500 u Snow-LXI 428,000 3,000 F C Total $ 1,447,000 Requirement 2. Based on the data presented what type of responsibility center is this subunit? Static Budget 299,000 142,000 307,000 268,500 406,000 1,422,500 $ Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $14,000? (Leave any unused cells blank.) Using the flexible budget variance as a guide, the following items will be investigated: Using the sales volume variance as a guide, the following items will be investigated: Cross-EXI Cross-EXII Downhill-RI Downhill-RII Snow-LXI None of the items should be investigated 0 Data Table Actual Flexible Budget Flexible Sales Volume Static Awesome Subunit X Revenue by Product Downhill-RI Downhill-RII Cross-EXI Cross-EXII Snow-LXI $ Results Variance $ 323,000 (a) 151,000 (C) 288,000 $ 4,000 U 257,000 ( 428,000 3,000 F $ 1,447,000 (0) Budget Variance Budget (b) $ 17,000 F $ 299,000 162,000 (d) 142,000 292,000 (e) 307,000 248,000 20,500 U 268,500 (g) (h) 406,000 (0) (k) $ 1,422,500 Total Print Done 6 Requirements 1. Complete the responsibility report for this subunit. 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 $14,000? Print Done
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