Tajiri Corporation uses customers served as its measure of activity (q). The following report compares the planning budget to the actual operating results for the month of May:

Required: Prepare a performance report that has the activity variances and revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).

Tajiri Corporation Comparison of Planning Budget to Actual Results For the Month Ended May 31 Planning Actual Budget Results Variances Customers served 20,000 21,000 Revenue ($3.604). $72,000 $75,800 $3.800 F Expenses: Wages and salaries ($22,600 + $1.10q)... 44,600 45,700 1,100 U Supplies ($0.500) 10,000 8,700 1,300 F Insurance ($4.600) 4,600 4,600 0 Miscellaneous ($3,400 + $0.309). 9,400 8,100 1.300F Total expense. 68,600 67,100 1,5001 Nct operating income $3,400 $8,700 $5,300 F