rev: 03_28_2012 © 2015 McGraw-Hill Education. All rights reserved. Requires a mo
ID: 2453833 • Letter: R
Question
rev: 03_28_2012
©2015 McGraw-Hill Education. All rights reserved.
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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:
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 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 CorporationComparison of Planning Budget to Actual Results
For the Month Ended May 31 Planning
Budget Actual
Results Variances Customers served 24,000 25,000 Revenue (3.50q) $ 84,000 $ 88,000 $ 4,000 F Expenses: Wages and salaries ($22,400 + $1.14q) 49,760 50,900 1,140 U Supplies ($0.54q) 12,960 11,660 1,300 F Insurance ($4,300) 4,300 4,300 0 Miscellaneous expense ($3,300 + $.34q) 11,460 10,160 1,300 F Total expense 78,480 77,020 1,460 F Net operating income $ 5,520 $ 10,980 $ 5,460 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 24,000 25,000 Revenue $ 84,000 $ $ $ $ 88,000 Expenses: Wages and salaries 49,760 50,900 Supplies 12,960 11,660 Insurance 4,300 4,300 Miscellaneous expense 11,460 10,160 Total expense 78,480 77,020 Net operating income $ 5,520 $ $ $ $ 10,980Explanation / Answer
Tajiri Corporation
Tajiri Corporation
Comparison of Planning Budget to Actual Results For the Month Ended May 31 Planning Actual Variances Budget Activity variance F/U Flexible Budget Revenue and spending variance F/U Results Total Customers served 24,000 25,000 25,000 Revenue (3.50q) 84,000 3,500 F 87,500 500 F 88,000 4,000 F Expenses: Wages and salaries ($22,400 + $1.14q) 49,760 1,140.00 U 50,900.00 0 50,900 1,140 U Supplies ($0.54q) 12,960 540 U 13,500.00 1,840 F 11,660 1,300 F Insurance ($4,300) 4,300 0 4300 0 4,300 0 Miscellaneous expense ($3,300 + $.34q) 11,460 340 U 11,800.00 1,640 F 10,160 1,300 F Total expense 78,480 2,020 U 80,500.00 3,480 F 77,020 1,460 F Net operating income 5,520 1,480 F 7,000 3,980 F 10,980 5,460 FRelated Questions
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