The accountant for a subunit of Landeau Sports Company went on vacation before completing the subunit's monthly performance report. This is as far as she got:

Requirements
1. Complete the performance evaluation 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 the management's decision criteria is to investigate all variances exceeding $15,500? Interpret your results. (What could cause these variances? What impact might these variances have on company inventory levels and operations?)

Transcribed Image Text:

Landeau Subunit X Revenue by Product Downhill Model RI. Downhill Model Rll Flexible Budget Flexible Volume Budget Variance Budget Master Actual Variance $16,000 F $ 304,000 151,000 300,000 263,500 402,000 $1,420,500 Model EX! Model EXl d Model X.. 157,000 280,000 253,000 422,000 $1,440,000 $171,000 282,000 245,000 $2,000 U 18,500 U 1,000 F Total