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: Tajiri Corporation Comparison of Planning Budget to Actual Results For the Month Ended May 31 Planning Budget Actual Results Variances Customers served 25,000 26,000 Revenue (3.60q) $ 90,000 $ 93,700 $ 3,700 F Expenses: Wages and salaries ($22,500 + $1.15q) 51,250 52,400 1,150 U Supplies ($0.55q) 13,750 12,350 1,400 F Insurance ($4,400) 4,400 4,400 0 Miscellaneous expense ($3,400 + $.35q) 12,150 10,750 1,400 F Total expense 81,550 79,900 1,650 F Net operating income $ 8,450 $ 13,800 $ 5,350 F Required: 1. 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 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 25,000 26000 26,000 Revenue $ 90,000 $ $ 0 $ $ 93,700 Expenses: Wages and salaries 51,250 52,400 Supplies 13,750 12,350 Insurance 4,400 4,400 Miscellaneous expense 12,150 10,750 Total expense 81,550 79,900 Net operating income $ 8,450 $ $ $ $ 13,800 rev: 03_28_2012

Explanation / Answer

Actual Results Flexible Budget Variances Customers Served                26,000.00                   26,000.00 Revenue(3.60q) $            93,700.00 $               93,600.00 $                   100.00 F Wages & Salaries ($22500+1.15q) $            52,400.00 $               52,400.00 $                            -   Supplies($0.55q) $            12,350.00 $               14,300.00 $                1,950.00 F Insurance($4400) $              4,400.00 $                 4,400.00 $                            -   Miscellaneous($3400+$0.35q) $            10,750.00 $               12,500.00 $                1,750.00 F Total Expenses $            79,900.00 $               83,600.00 $                3,700.00 F Net Operating Income $            13,800.00 $               10,000.00 $                3,800.00 F

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