Problem 9-287 Tajiri Corporation uses customers served ...

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		27,000		28,000
Revenue (3.50q)	$	94,500	$	98,400	$	3,900	F
Expenses:
Wages and salaries ($22,700 + $1.17q)		54,290		55,460		1,170	U
Supplies ($0.57q)		15,390		13,790		1,600	F
Insurance ($4,600)		4,600		4,600		0
Miscellaneous expense ($3,600 + $.37q)		13,590		11,990		1,600	F
Total expense		87,870		85,840		2,030	F
Net operating income	$	6,630	$	12,560	$	5,930	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		27,000							28,000
Revenue	$	94,500	$	(Click to select)FUNone	$	$	(Click to select)FUNone	$	98,400
Expenses:
Wages and salaries		54,290		(Click to select)FUNone			(Click to select)FUNone		55,460
Supplies		15,390		(Click to select)FUNone			(Click to select)FUNone		13,790
Insurance		4,600		(Click to select)FUNone			(Click to select)FUNone		4,600
Miscellaneous expense		13,590		(Click to select)FUNone			(Click to select)FUNone		11,990
Total expense		87,870		(Click to select)FUNone			(Click to select)FUNone		85,840
Net operating income	$	6,630	$	(Click to select)NoneFU	$	$	(Click to select)FUNone	$	12,560