Reference no: EM13519262

Tajiri Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of May:

Tajiri Corporation Comparison of Planning Budget to Actual Results For the Month Ended May 31
	Planning Budget		Actual Results		Variances
Customers served		45,000		46,000
Revenue (3.60q)	$	162,000	$	165,300	$	3,300	F
Expenses:
Wages and salaries ($24,500 + $1.35q)		85,250		86,600		1,350	U
Supplies ($0.75q)		33,750		31,950		1,800	F
Insurance ($6,400)		6,400		6,400		0
Miscellaneous ($5,400 + $.44q)		25,200		23,400		1,800	F
Total expense		150,600		148,350		2,250	F
Net operating income	$	11,400	$	16,950	$	5,550	F

Required:

1. Complete the company's flexible budget performance report for May. Label each variance as favorable (F) or unfavorable (U). (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).

Tajiri Corporation
Flexible Budget Performance Report Part 1 & 2
For the Month Ended May 31
	Planning Budget		Activity Variances		Flexible Budget	Revenue and Spending Variances		Actual Results
Customers served		45,000							46,000
Revenue	$	162,000	$		$	$		$	165,300
Expenses:
Wages and salaries		85,250							86,600
Supplies		33,750							31,950
Insurance		6,400							6,400
Miscellaneous		25,200							23,400
Total expense		150,600							148,350
Net operating income	$	11,400	$		$	$		$	16,950