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Question: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 CorporationComparison of Planning Budget to Actual ResultsFor the Month Ended May 31
Planning Budget
Actual Results
Variances
Customers served
39,000
40,000
Revenue (3.40q)
$132,600
$136,500
$3,900
F
Expenses: Wages and salaries ($23,900 + $1.29q)
74,210
75,500
1,290
U
Supplies ($0.69q)
26,910
24,210
2,700
Insurance ($5,800)
5,800
0
Miscellaneous expense ($4,800 + $.38q)
19,620
16,920
2700
Total expense
126,540
122,430
4,110
Net operating income
$6,060
$14,070
$8,010
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