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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
	Planning Budget Unit Revenues and Costs	Actual Unit Revenues and Costs	Variances
Exchanges completed	40	54
Revenue	$401	$391	$10	U
Expenses:
Legal and search fees	160	181	21	U
Office expenses	144	106	38	F
Equipment depreciation	12	8.89	3.11	F
Rent	59	43.7	15.3	F
Insurance	6	4.44	1.56	F
Total expense	381	344.03	36.97	F
Net operating income	$20	$46.97	$26.97	F

Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $144 per exchange completed on the planning budget; whereas, the average actual office expense is $106 per exchange completed.

Legal and search fees is a variable cost; office expenses is a mixed cost; and equipment depreciation, rent, and insurance are fixed costs. In the planning budget, the fixed component of office expenses was $4,100.

All of the company's revenues come from fees collected when an exchange is completed.

Required:

Prepare a performance report that would help the owner/manager assess the performance of the company in May.

Exchange Corp Flexible Budget Performance Report For the Month Ended May 31
	Activity Variances		Spending Variances
Revenue	$		$
Legal and search fees
Office expenses
Equipment depreciation
Rent
Insurance
Total expense
Net operating income	$		$

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