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		28,000		29,000
Revenue (3.40q)	$	95,200	$	98,800	$	3,600	F
Expenses:
Wages and salaries ($22,800 + $1.18q)		55,840		57,020		1,180	U
Supplies ($0.58q)		16,240		14,540		1,700	F
Insurance ($4,700)		4,700		4,700		0
Miscellaneous expense ($3,700 + $.38q)		14,340		12,640		1,700	F
Total expense		91,120		88,900		2,220	F
Net operating income	$	4,080	$	9,900	$	5,820	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		28,000							29,000
Revenue	$	95,200	$	(Click to select)FUNone	$	$	(Click to select)FUNone	$	98,800
Expenses:
Wages and salaries		55,840		(Click to select)FUNone			(Click to select)FUNone		57,020
Supplies		16,240		(Click to select)FUNone			(Click to select)FUNone		14,540
Insurance		4,700		(Click to select)FUNone			(Click to select)FUNone		4,700
Miscellaneous expense		14,340		(Click to select)NoneFU			(Click to select)FUNone		12,640
Total expense		91,120		(Click to select)FNoneU			(Click to select)FUNone		88,900
Net operating income	$	4,080	$	(Click to select)FUNone	$	$	(Click to select)FUNone	$	9,900

Answer rating: 100% (QA)

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