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 |
|
45,000 |
|
46,000 |
|
|
|
| Revenue (3.60q) |
$ |
162,000 |
$ |
165,300 |
$ |
3,300 |
F |
|
|
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
|
|
| Wages and salaries ($24,500 + $1.35q) |
|
85,250 |
|
86,600 |
|
1,350 |
U |
| Supplies ($0.75q) |
|
33,750 |
|
31,950 |
|
1,800 |
F |
| Insurance ($6,400) |
|
6,400 |
|
6,400 |
|
0 |
|
| Miscellaneous ($5,400 + $.44q) |
|
25,200 |
|
23,400 |
|
1,800 |
F |
|
|
|
|
|
|
|
|
| Total expense |
|
150,600 |
|
148,350 |
|
2,250 |
F |
|
|
|
|
|
|
|
|
| Net operating income |
$ |
11,400 |
$ |
16,950 |
$ |
5,550 |
F |
|
|
|
|
|
|
|
|
|
Required:
1. Complete 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).
| 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 |
|
45,000 |
|
|
|
|
|
|
46,000 |
| Revenue |
$ |
162,000 |
$ |
|
$ |
$ |
|
$ |
165,300 |
|
|
|
|
|
|
|
|
|
|
| Expenses: |
|
|
|
|
|
|
|
|
|
| Wages and salaries |
|
85,250 |
|
|
|
|
|
|
86,600 |
| Supplies |
|
33,750 |
|
|
|
|
|
|
31,950 |
| Insurance |
|
6,400 |
|
|
|
|
|
|
6,400 |
| Miscellaneous |
|
25,200 |
|
|
|
|
|
|
23,400 |
|
|
|
|
|
|
|
|
|
|
| Total expense |
|
150,600 |
|
|
|
|
|
|
148,350 |
|
|
|
|
|
|
|
|
|
|
| Net operating income |
$ |
11,400 |
$ |
|
$ |
$ |
|
$ |
16,950 |