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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 119%? 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 A B D E Variance Percentage Soaring Sports Manufacturing Company-Golf Accessories Subunit Product Actual Budgeted (U or F) (U or F) Monthly Performance Report Direct materials $ 26,925 $ 25,000 F 14,235 U % 3 For the Month Direct labor 15,000 Varian Percenta Indirect labor 29,275 25,000 F 4 Actual Budgeted Variance Utilities 13,170 12,000 % 5 Direct materials 26,925 s 25,000 Depreciation 15,500 15,500 F % 6 Direct labor 15,000 14,235 Repairs and maintenance 6,315 7,500 7 Indirect labor 25,000 29,275 $ 105,420 $ 100,000 8 Utilities 13,170 Total 12,000

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 119%? 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 A B D E Variance Percentage Soaring Sports Manufacturing Company-Golf Accessories Subunit Product Actual Budgeted (U or F) (U or F) Monthly Performance Report Direct materials $ 26,925 $ 25,000 F 14,235 U % 3 For the Month Direct labor 15,000 Varian Percenta Indirect labor 29,275 25,000 F 4 Actual Budgeted Variance Utilities 13,170 12,000 % 5 Direct materials 26,925 s 25,000 Depreciation 15,500 15,500 F % 6 Direct labor 15,000 14,235 Repairs and maintenance 6,315 7,500 7 Indirect labor 25,000 29,275 $ 105,420 $ 100,000 8 Utilities 13,170 Total 12,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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