Tajiri Corporation Comparison of Planning Budget to Actual Results For the Month

Question

Tajiri Corporation Comparison of Planning Budget to Actual Results For the Month Ended May 31 Planning Budget Actual Results Variances Customers served 34,000 35,000 Revenue (3.50q) $ 119,000 $ 122,600 $ 3,600 F Expenses: Wages and salaries ($23,400 + $1.24q) 65,560 66,800 1,240 U Supplies ($0.64q) 21,760 19,560 2,200 F Insurance ($5,300) 5,300 5,300 0 Miscellaneous expense ($4,300 + $.33q) 15,520 13,320 2,200 F Total expense 108,140 104,980 3,160 F Net operating income $ 10,860 $ 17,620 $ 6,760 F Required: 1. Prepare the company's flexible budget performance report for May. Label each variance as favorable (F) or unfavorable (U).

Explanation / Answer

Ans-

Planning Actual Result Variance Budget Budget Customers served           34,000              35,000 Revenue (3.50q)        119,000            122,600 $ 3,600 F Expenses: Wages and salaries     ($23,400 + $1.24q)           65,560              66,800 1,240 U Supplies ($0.64q)           21,760              19,560 2,200 F   Insurance($5,300)             5,300                5,300                                     -   Miscellaneous expense ($4,300 + $.33q)           15,520              13,320 2,200 F Total expense        108,140            104,980 3160F Net operating income           10,860              17,620 6760F Flexible Budget Performance Report Planning Flexible Activity Budget Budget Variance Customers served           34,000              35,000 - Revenue (3.50q)        119,000            122,500                               3,500 F Expenses: Wages and salaries     ($23,400 + $1.24q)           65,560              66,800                               1,240 U Supplies ($0.64q)           21,760              22,400                                  640 U   Insurance($5,300)             5,300                5,300                                     -   Miscellaneous expense ($4,300 + $.33q)           15,520              15,850                                  330 U Total expense        108,140            110,350                               2,210 U Net operating income           10,860              12,150                               1,290 F Flexible Budget Performance Report Flexible Actual Result Revenue & Spending   Budget Budget Variance Customers served           35,000              35,000 Revenue (3.50q)        122,500            122,600                                  100 F Expenses: Wages and salaries     ($23,400 + $1.24q)           66,800              66,800                                     -   Supplies ($0.64q)           22,400              19,560                               2,840 F   Insurance($5,300)             5,300                5,300                                     -   Miscellaneous expense ($4,300 + $.33q)           15,850              13,320                               2,530 F Total expense        110,350            104,980                               5,370 F Net operating income           12,150              17,620                               5,470 F

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.