One subunit of Pike Sports Company had the following financial results last mont

Question

One subunit of Pike Sports Company had the following financial results last month: EEB (Click the icon to view the financial resulits.) Read the requirements 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 [FI or unfavorable (U]. For any zero variances, enter a 0 in the variance column and then leave the F or U box blank. Enter the variance percent as a percentage rounded to two decimal places. X.XX%.) Flexible Budget Variance (F or U) ActualFlexible Pike-Subunit X Direct Materials Direct Labor Indirect Labor Utilities Results Budget S 29,100 $ 27,000 14,600 23,100 11,100 27,000 5,900 S 112,900 $ 108,700 13,800 26,100 12,000 27,000 4,900 Repairs and Maintenance Total Data Table Flexible Budget Variance (F or U) Actual % Variance Pike Subunit X Direct Materials Direct Labor Indirect Labor Utilities Results Flexible Budget (F or U) 27,000 4,600 23,100 11,100 27,000 5,900 108,700 S 29,100 S 13,800 26,100 12,000 27,000 4,900 Repairs and Maintenance $ 112,900 S Total Print Done

Explanation / Answer

1.Performance evaluation report: Pike subunit X Actual Results flexible budget Flexible Budget F/U variance % (F/U) DM 29100 27000 -2100 U -0.0186 U DL 13800 14600 800 F 0.0071 F Ind Lab 26100 23100 -3000 U -0.0266 U Utilities 12000 11100 -900 U -0.0080 U Dep 27000 27000 0 N 0.0000 N Repairs and maintenance 4900 5900 1000 F 0.0089 F Total 112900 108700 -4200 U -0.0372 U 2. It is a production responsibility center. 3. Yes, the cost items will be investigated because they show heavy negative variance over $2500. 4. Yes, only unfavourable variances be investigated as favourable variances are positive and beneficial.

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