The Financial Results for One of the Subunits of Factory

question 150

Essay

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)?

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Definitions:

Correlational Study

A type of research method that examines the relationship between two or more variables to determine whether they are associated or have a correlation, without implying causation.

Tentative Explanation

An initial, provisional hypothesis proposed to explain a phenomenon or observation, subject to further testing and investigation.

Medication-Withdrawal

Symptoms or conditions that arise as a consequence of reducing or stopping the intake of a drug on which the body has become dependent.

Symptom-Exacerbation

The worsening or intensification of symptoms.