FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
One subunit of Soaring Sports Manufacturing Company had the following financial results last month:
E (Click the icon to view the financial results.)
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 $3,200 or 11%?
4. Should only unfavorable variances be investigated? Explain.
Requirement 1. Complete the performance evaluation report for this subunit. (Enter the variances as positive numbers. Rour
(U). If the variance is 0, make sure to enter in a "0". A variance of zero is considered favorable.)
Data table
Variance
B
E
Variance
Percentage
Soaring Sports Manufacturing Company-Golf Accessories Subunit
Product
Actual
Budgeted
(U or F)
(U or F)
2
Monthly Performance Report
Direct materials
26,925 $
25,000
3
For the Month
Direct labor
14,235
15,000
U
%
Variance
Indirect labor
29,275
25,000
F
Budgeted Variance *
%
4
Actual
Percentage *
13,170
U
25,000
Utilities
12,000
%
5 Direct materials
$ 26,925 S
Depreciation
15,500
15,500
F
%
6 Direct labor
14,235
15,000
Repairs and maintenance
6,315
7,500
%
7 Indirect labor
29,275
25,000
$ 105,420 $
100,000
Total
%
8 Utilities
13,170
12,000
9 Depreciation
15,500
15,500
Reauirement 2. Based on the data presented. what tvpe of responsibilitv center is the subunit?
10 Repairs and maintenance
6,315
7,500
11 Total
$ 105,420 s 100,000
*Do cure to indinata ubathoronah uarionns in fuorable (ELorunfouorable K
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Transcribed Image Text:One subunit of Soaring Sports Manufacturing Company had the following financial results last month: E (Click the icon to view the financial results.) 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 $3,200 or 11%? 4. Should only unfavorable variances be investigated? Explain. Requirement 1. Complete the performance evaluation report for this subunit. (Enter the variances as positive numbers. Rour (U). If the variance is 0, make sure to enter in a "0". A variance of zero is considered favorable.) Data table Variance B E Variance Percentage Soaring Sports Manufacturing Company-Golf Accessories Subunit Product Actual Budgeted (U or F) (U or F) 2 Monthly Performance Report Direct materials 26,925 $ 25,000 3 For the Month Direct labor 14,235 15,000 U % Variance Indirect labor 29,275 25,000 F Budgeted Variance * % 4 Actual Percentage * 13,170 U 25,000 Utilities 12,000 % 5 Direct materials $ 26,925 S Depreciation 15,500 15,500 F % 6 Direct labor 14,235 15,000 Repairs and maintenance 6,315 7,500 % 7 Indirect labor 29,275 25,000 $ 105,420 $ 100,000 Total % 8 Utilities 13,170 12,000 9 Depreciation 15,500 15,500 Reauirement 2. Based on the data presented. what tvpe of responsibilitv center is the subunit? 10 Repairs and maintenance 6,315 7,500 11 Total $ 105,420 s 100,000 *Do cure to indinata ubathoronah uarionns in fuorable (ELorunfouorable K
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