Exchange Corp. is a company that acts as a facilitator in tax-favored real estate swaps. Such swaps, know as 1031 exchanges, permit participants to avoid some or all of the capital gains taxes that would otherwise be due. The bookkeeper for the company has been asked to prepare a report for the company to help its owner/manager analyze performance. The first such report appears below:

Exchange Corp Analysis of Revenues and Costs For the Month Ended May 31 Actual Unit Revenues and CostsPlanning Budget Unit Revenues and CostsVariancesExchanges completed 25 20 Revenue$560 $600 $40UExpenses: Legal and search fees 191 180 11UOffice expenses 187 224 37FEquipment depreciation 24 30 6FRent 60 75 15FInsurance 12 15 3FTotal expense 474 524 50FNet operating income$86 $76 $10F

Nate that tre revenues andl coats n the sbevs 18t par echange cemplted eclonene osgneceton nent, and insuronce are foaed conss, ls the planning budget, the fised camperent of office spenans wass 54,400. Required of each variance by sleein'?" for tavorable, rter unfavorabi, and won Flax tre Budget Perfarmance Report VariancesPa