McInnes Groceries of Heber Valley maintains tight control on its operating expenses through the use of budgets. The monthly and year-to-date budgets are based on formulas that the chief accountant developed. The accounts, monthly budget formulas, and May and year-to-date activities are:

Required: 

Prepare a responsibility performance report for the operating expenses. Show the May and year-to-date information for actual, budget, and favorable and unfavor- able budget variances. Separate the report into three sections: variable costs, semivariable costs, and fixed costs.

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Actual Results Payroll Store Supplies. Advertising... Equipment Rental. Payroll Taxes.... Budget Information $50,000+ 6.0% of revenues 1.0% of revenues May Year-to-Date $ 69,000 $ 362,000 3,600 15,000 $ 4,000+ 1.0% of revenues 6,010 38,150 $ 8,000 8,100 37,220 15.0% of payroll 9,940 51,860 Accounting, Legal, Fees $ 4,000 + 0.5% of revenues 5,760 29,800 Training Expenses... Charitable Contributions $ 2,000+ 1.5% of revenues 8,000 41,740. $ 1,000+ 0.5% of revenues 1,600 8,000 Utilities and Telephone $ 2,700+ 0.5% of revenues 6,100 21,900 Leasing... Insurance Depreciation on Equipment Transportation Expenses... Revenues $ 9,000 9,000 45,000 $ 2,600 2,800 14,200 $ 4,700 5,000 25,000 $ 2,900 +2.0% of revenues 8,480 41,950 300,000 1,700,000