Tajiri Corporation uses customers served as its measure of activity. The followi
ID: 2587345 • Letter: T
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
Actual Results Revenue and spending variances Flexible budget Activity variances Planning Budget Customers served 38000 38000 37000 Revenue 133800 800 F 133000 3500 F 129500 Expenses: Wages and salaries 71960 0 None 71960 1270 U 70690 Supplies 22290 3170 F 25460 670 U 24790 Insurance 5600 0 None 5600 0 None 5600 Miscellaneous expense 15420 2860 F 18280 360 U 17920 Total expense 115270 6030 F 121300 2300 U 119000 Net operating income 18530 6830 F 11700 1200 F 10500
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