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 |
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| Planning Budget |
Actual Results |
Variances | |||||
| Customers served | 45,000 | 46,000 | |||||
| Revenue (3.60q) | $ | 162,000 | $ | 165,300 | $ | 3,300 | F |
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| 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 | |||
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| Total expense | 150,600 | 148,350 | 2,250 | F | |||
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| Net operating income | $ | 11,400 | $ | 16,950 | $ | 5,550 | F |
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| 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). 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 | 45,000 | 46,000 | |||||||
| Revenue | $ | 162,000 | $ | $ | $ | $ | 165,300 | ||
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| Expenses: | |||||||||
| Wages and salaries | 85,250 | 86,600 | |||||||
| Supplies | 33,750 | 31,950 | |||||||
| Insurance | 6,400 | 6,400 | |||||||
| Miscellaneous | 25,200 | 23,400 | |||||||
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| Total expense | 150,600 | 148,350 | |||||||
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| Net operating income | $ | 11,400 | $ | $ | $ | $ | 16,950 | ||
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