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 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 F Insurance ($5,800) 5,800 5,800 0 Miscellaneous expense ($4,800 + $.38q) 19,620 16,920 2,700 F Total expense 126,540 122,430 4,110 F Net operating income $ 6,060 $ 14,070 $ 8,010 F Required: 1. Prepare the company's flexible budget performance report for May. Label each variance as fa

Explanation / Answer

Tajiri Corporation Flexible budget performance For the month ended May 31 Planning Budget Activity variance Flexible budget Customers served(q) 39,000 40,000 Revenue($3.4q) 132,600 3,900 F 136,500 Expenses: Wages & Salaries(23,900+1.29q) 74,210 1,290 U 75,500 Supplies($0.69q) 26,910 2,700 F 24,210 Insurance($5800) 5,800 5,800 Miscellaneous($4800+$0.38q) 19,620 2,700F 16,920 Total expense 126,540 4,110F 122,430 Net operating income 6,060 8,010F 14,070

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