Question

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​ management's decision criteria is to investigate all variances exceeding $ 2 comma 800 or 12 % question mark 4. Should only unfavorable variances be​ investigated? Explain. Requirement 1. Complete the performance evaluation report for this subunit. ​(Enter the variances as positive numbers. Round the variance percentages to the nearest hundredth​ percent, X.XX%. Label each variance as favorable​ (F) or unfavorable​ (U). If the variance is​ 0, make sure to enter in a​ "0". A variance of zero is considered​ favorable.) Variance Product Actual Budgeted (U or F) Direct materials $12,930 $12,000 Direct labor 13,265 14,000 Indirect labor 23,380 20,000 Utilities 16,455 15,000 Depreciation 30,250 30,250 Repairs and maintenance 4,205 5,000 Total $100,485 $96,250

Answer 1

Performance Evaluation Report
Accel- SubUnit	Actual	Flexible Budget	Flexible Budget Variance (F or U)	% Variance	F or UF
Direct materials	12,930.00	12,000.00	-930.00	7.75%	UF
Direct   Labor	13,265.00	14,000.00	735.00	5.25%	F
Indirect Labour	23,380.00	20,000.00	-3,380.00	16.90%	UF
Utilities	16,455.00	15,000.00	-1,455.00	9.70%	UF
Depreciation	30,250.00	30,250.00	-	0.00%	Nil
Repair & Maintainance	4,205.00	5,000.00	795.00	15.90%	F
Total	1,00,485.00	96,250.00

Part-2: Subunit is a cost centre.

Part-3: Indirect Labour and Repair Maintainance Should be reviewed.

Part-4: No Favorable variances should also be investigated since this investigation helps for setting up the most right standards. some time standards setup are not accurate results into a positive variances.