Tajiri Corporation uses customers served as its measure of activity. The followi

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:

Prepare 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). Omit the "$" sign in your response.)

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:

Explanation / Answer

Planning Budget Activity Variances Flexible Budget Revenue and spending variances Actual Results Customers served 21,000 1,000 U 22,000 None 22,000 Revenue $ 71,400 $ 74,800 $ 400 F $ 75,200 Expenses Wages and salaries $ 45,410 $ 46,520 None $ 46,520 Supplies $ 10,710 $ 11,220 $ 1,510 F $ 9,710 Insurance $ 4,000 $ 4,000 None $ 4,000 Miscellaneous expenses $ 9,510 $ 9,820 $ 1,310 F $ 8,510 Total expenses 69,630 $ 71,560 $ 2,820 F $ 68,740 Net operating income $ 1,770 $ 1,470 U $ 3,240 $ 3,220 F $ 6,460

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