The financial results for one of the subunits of Factory Six Racing is presented in the partially completed performance evaluation report below.

* Flexible budget variance/Flexible budget
Required:
1. Complete the performance report rounding to three decimal places.
2. Based on the data presented, what type of responsibility centre is this subunit?
3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $5,000 and exceeding 10% ( both criteria must be met)?

Question

The financial results for one of the subunits of Factory Six Racing is presented in the partially completed performance evaluation report below.
  
* Flexible budget variance/Flexible budget
Required:
1. Complete the performance report rounding to three decimal places.
2. Based on the data presented, what type of responsibility centre is this subunit?
3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $5,000 and exceeding 10% ( both criteria must be met)?

Quizplus · Accepted Answer

The Answer of The financial results for one of the subunits of Factory Six Racing is presented in the partially completed performance evaluation report below.
  
* Flexible budget variance/Flexible budget
Required:
1. Complete the performance report rounding to three decimal places.
2. Based on the data presented, what type of responsibility centre is this subunit?
3. Which items should be investigated if part of management's decision criteria is to investigate all variances equal to or exceeding $5,000 and exceeding 10% ( both criteria must be met)?

The Financial Results for One of the Subunits of Factory