Requirement 1. Complete the responsibility report for this subunit. Snow-Subunit X Actual Flexible Budget Flexible Sales Volume Static Revenue by Product Results Variance Budget Variance Budget Downhill-RI $ 320.000 19.000 F 200,000 Downhill-RII 152.000 160.000 144.000 Cross-EXI 281.000 4.000 U 285,000 300,000 Cross-EXII 254.000 248.000 19.500 U 207.500 430.000 5,000- 406.000 Snow-LXI 1.437,000 1.413,500 Total Requirement 2. Based on the data presented what type of responsibility center is this subunit? Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $11,000? (If an input field is not used, leave the input field(s) empty. Do not select a label.) Using the flexible budget variance as a guide, the following items will be investigated: - X Data Table Snow-Subunit X Revenue by Product Actual Results Flexible Budget Variance Flexible Sales Volume Static Budget Variance Budget Downhill-RI 320,000 (a) (b) 19,000 F $ 296,000
Requirement 1. Complete the responsibility report for this subunit. Snow-Subunit X Actual Flexible Budget Flexible Sales Volume Static Revenue by Product Results Variance Budget Variance Budget Downhill-RI $ 320.000 19.000 F 200,000 Downhill-RII 152.000 160.000 144.000 Cross-EXI 281.000 4.000 U 285,000 300,000 Cross-EXII 254.000 248.000 19.500 U 207.500 430.000 5,000- 406.000 Snow-LXI 1.437,000 1.413,500 Total Requirement 2. Based on the data presented what type of responsibility center is this subunit? Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $11,000? (If an input field is not used, leave the input field(s) empty. Do not select a label.) Using the flexible budget variance as a guide, the following items will be investigated: - X Data Table Snow-Subunit X Revenue by Product Actual Results Flexible Budget Variance Flexible Sales Volume Static Budget Variance Budget Downhill-RI 320,000 (a) (b) 19,000 F $ 296,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:The accountant for a subunit of Snow Sports Company went on vacation before completing the subunit's monthly responsibility report. This is as far as she got
E (Click the icon to view the responsibility report.)
Read the requirements
Requirement 1. Complete the responsibility report for this subunit
Snow-Subunit X
Actual
Flexible Budget
Flexible
Sales Volume
Static
Revenue by Product
Results
Variance
Budget
Variance
Budget
Downhill-RI
$ 320,000
19.000 F
298,000
Downhill-RII
152,000
160,000
144.000
Cross-EXI
281.000
4,000 U
285.000
300,000
Cross-EXII
254.000
248.000
19.500 U
267,500
430,000
5.000 -
408,000
Snow-LXI
1.437,000
1.413,500
Total
Requirement 2. Based on the data presented what type of responsibility center is this subunit?
Requirement 3. Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $11,000? (If an input field is not used, leave the input field(s) empty. Do not select a label.)
Using the flexible budget variance as a guide, the following items will be investigated:
Data Table
Snow-Subunit X
Actual
Flexible Budget
Flexible
Sales Volume
Static
Revenue by Product
Results
Variance
Budget
Variance
Budget
Downhill-RI
320,000
(a)
(b)
19,000 F S
$ 296,000
Using the sales volume variance as a guide, the following items will be investigated:
Downhill-RII
152,000
(c)
180,000
(d)
144,000
Cross-EXI
281,000 $
4,000 U
285,000
(e)
300,000
Cross-EXII
254,000
248,000
19,500 U
287,500
Snow-LXI
430,000
5,000 F
(g)
(h)
406,000
$ 1.437.000
(i)
(k)
$ 1,413.500
Total
Print
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