One subunit of Snow Sports Company had the following financial results last month: 1(Click the icon to view the financial results.) Read the requirements2. 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 [F] 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%.) Actual Flexible Flexible Budget Snow - Subunit X Results Budget Variance (F or U) Direct Materials $29,000 $27,200 (1) U Direct Labor 13,700 14,200 (2) F Indirect Labor 26,200 22,900 (3) U Utilities 12,400 11,300 (4) U Depreciation 26,000 26,000 (5) Repairs and Maintenance 4,100 4,800 (6) F Total $111,400 $106,400 (7) U % Variance (F or U) % (8) % (9) % (10) % (11) % (12) % (13) % (14) Requirement 2. Based on the data presented, what type of responsibility center is this subunit? What type of responsibility center is this unit? (15) Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $2,500 or 10%? (If a box is not used in the table, leave the box empty.) (16) (17) (18) (19) (20) Requirement 4. Should only unfavorable variances be investigated? (21) Favorable variances (22) be investigated to (23) 1: Data Table Snow—Subunit X Actual Results Flexible Budget Flexible Budget Variance (F or U) % Variance (F or U) Direct Materials $29,000 $27,200 Direct Labor 13,700 14,200 Indirect Labor 26,200 22,900 Utilities 12,400 11,300 Depreciation 26,000 26,000 Repairs and Maintenance 4,100 4,800 Total $111,400 $106,400 2: Requirements 1. Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage of the budgeted amount rounded to two decimal places. 2. Based on the data presented, what type of responsibility center is this subunit? 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $2,500 or 10%? 4. Should only unfavorable variances be investigated? Explain. (1) U F (2) U F (3) U F (4) U F (5) U F (6) U F (7) U F (8) U F (9) U F (10) U F (11) U F (12) U F (13) U F (14) U F (15) Cost center Investment center Profit center Revenue center (16) Depreciation Direct labor Direct materials Indirect labor Repairs and maintenance Utilities (17) Depreciation Direct labor Direct materials Indirect labor Repairs and maintenance Utilities (18) Depreciation Direct labor Direct materials Indirect labor Repairs and maintenance Utilities (19) Depreciation Direct labor Direct materials Indirect labor Repairs and maintenance Utilities (20) Depreciation Direct labor Direct materials Indirect labor Repairs and maintenance Utilities (21) Yes No (22) should should not (23) allocate the favorable variance to the other accounts. find a way to make them closer to the budget. make sure the variance does not happen again. make sure they will not have a negative impact on future operations.
One subunit of Snow Sports Company had the following financial results last month: 1(Click the icon to view the financial results.) Read the requirements2. 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 [F] 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%.) Actual Flexible Flexible Budget Snow - Subunit X Results Budget Variance (F or U) Direct Materials $29,000 $27,200 (1) U Direct Labor 13,700 14,200 (2) F Indirect Labor 26,200 22,900 (3) U Utilities 12,400 11,300 (4) U Depreciation 26,000 26,000 (5) Repairs and Maintenance 4,100 4,800 (6) F Total $111,400 $106,400 (7) U % Variance (F or U) % (8) % (9) % (10) % (11) % (12) % (13) % (14) Requirement 2. Based on the data presented, what type of responsibility center is this subunit? What type of responsibility center is this unit? (15) Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $2,500 or 10%? (If a box is not used in the table, leave the box empty.) (16) (17) (18) (19) (20) Requirement 4. Should only unfavorable variances be investigated? (21) Favorable variances (22) be investigated to (23) 1: Data Table Snow—Subunit X Actual Results Flexible Budget Flexible Budget Variance (F or U) % Variance (F or U) Direct Materials $29,000 $27,200 Direct Labor 13,700 14,200 Indirect Labor 26,200 22,900 Utilities 12,400 11,300 Depreciation 26,000 26,000 Repairs and Maintenance 4,100 4,800 Total $111,400 $106,400 2: Requirements 1. Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage of the budgeted amount rounded to two decimal places. 2. Based on the data presented, what type of responsibility center is this subunit? 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $2,500 or 10%? 4. Should only unfavorable variances be investigated? Explain. (1) U F (2) U F (3) U F (4) U F (5) U F (6) U F (7) U F (8) U F (9) U F (10) U F (11) U F (12) U F (13) U F (14) U F (15) Cost center Investment center Profit center Revenue center (16) Depreciation Direct labor Direct materials Indirect labor Repairs and maintenance Utilities (17) Depreciation Direct labor Direct materials Indirect labor Repairs and maintenance Utilities (18) Depreciation Direct labor Direct materials Indirect labor Repairs and maintenance Utilities (19) Depreciation Direct labor Direct materials Indirect labor Repairs and maintenance Utilities (20) Depreciation Direct labor Direct materials Indirect labor Repairs and maintenance Utilities (21) Yes No (22) should should not (23) allocate the favorable variance to the other accounts. find a way to make them closer to the budget. make sure the variance does not happen again. make sure they will not have a negative impact on future operations.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
One subunit of
Snow
Sports Company had the following financial results last month:1(Click
the icon to view the financial results.)Read the
requirements2.
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 [F] 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%.)
|
|
Actual
|
Flexible
|
Flexible Budget
|
|
|
Snow - Subunit X
|
Results
|
Budget
|
Variance (F or U)
|
|
|
Direct Materials
|
$29,000
|
$27,200
|
|
(1) U
|
|
Direct Labor
|
13,700
|
14,200
|
|
(2) F
|
|
Indirect Labor
|
26,200
|
22,900
|
|
(3) U
|
|
Utilities
|
12,400
|
11,300
|
|
(4) U
|
|
|
26,000
|
26,000
|
|
(5)
|
|
Repairs and Maintenance
|
4,100
|
4,800
|
|
(6) F
|
|
Total
|
$111,400
|
$106,400
|
|
(7) U
|
|
% Variance
|
||
|
(F or U)
|
||
|
|
%
|
(8)
|
|
|
%
|
(9)
|
|
|
%
|
(10)
|
|
|
%
|
(11)
|
|
|
%
|
(12)
|
|
|
%
|
(13)
|
|
|
%
|
(14)
|
Requirement 2. Based on the data presented, what type of responsibility center is this subunit?
What type of responsibility center is this unit?
(15)
Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $2,500 or 10%? (If a box is not used in the table, leave the box empty.)
|
(16)
|
|
(17)
|
|
(18)
|
|
(19)
|
|
(20)
|
Requirement 4. Should only unfavorable variances be investigated?
(21)
Favorable variances
be investigated to
(22)
(23)
1: Data Table
|
Snow—Subunit X
|
Actual Results
|
Flexible Budget
|
Flexible Budget Variance (F or U)
|
% Variance (F or U)
|
|---|---|---|---|---|
|
Direct Materials
|
$29,000
|
$27,200
|
||
|
Direct Labor
|
13,700
|
14,200
|
||
|
Indirect Labor
|
26,200
|
22,900
|
||
|
Utilities
|
12,400
|
11,300
|
||
|
Depreciation
|
26,000
|
26,000
|
||
|
Repairs and Maintenance
|
4,100
|
4,800
|
||
|
Total
|
$111,400
|
$106,400
|
|
|
2: Requirements
|
1.
|
Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage of the budgeted amount rounded to two decimal places.
|
|
2.
|
Based on the data presented, what type of responsibility center is this subunit?
|
|
3.
|
Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $2,500 or 10%?
|
|
4.
|
Should only unfavorable variances be investigated? Explain.
|
(1)
U
F
(2)
U
F
(3)
U
F
(4)
U
F
(5)
U
F
(6)
U
F
(7)
U
F
(8)
U
F
(9)
U
F
(10)
U
F
(11)
U
F
(12)
U
F
(13)
U
F
(14)
U
F
(15)
Cost center
Investment center
Profit center
Revenue center
(16)
Depreciation
Direct labor
Direct materials
Indirect labor
Repairs and maintenance
Utilities
(17)
Depreciation
Direct labor
Direct materials
Indirect labor
Repairs and maintenance
Utilities
(18)
Depreciation
Direct labor
Direct materials
Indirect labor
Repairs and maintenance
Utilities
(19)
Depreciation
Direct labor
Direct materials
Indirect labor
Repairs and maintenance
Utilities
(20)
Depreciation
Direct labor
Direct materials
Indirect labor
Repairs and maintenance
Utilities
(21)
Yes
No
(22)
should
should not
(23)
allocate the favorable variance to the other accounts.
find a way to make them closer to the budget.
make sure the variance does not happen again.
make sure they will not have a negative impact on future operations.
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