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Author Question: The financial results for one of the subunits of Factory Six Racing is presented in the partially ... (Read 42 times)

TVarnum

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




Subunit - CobraST



Actual


Flexible
Budget
Flexible
Budget
Variance
(U or F)

Percentage*
Variance
(U or F)
Sales$243,000$225,000
Cost of goods sold  130,000  125,000
Gross margin$113,000$100,000
Operating expenses   26,000    25,000
Operating income before service department charges$87,000$75,000
Service department charges (allocated)   17,500   12,500
Operating income$69,500$62,500

* 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)?


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Marked as best answer by TVarnum on Jan 5, 2020

iman

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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TVarnum

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Reply 2 on: Jan 5, 2020
YES! Correct, THANKS for helping me on my review


diana chang

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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