The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two...
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The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Fixed Cost per Month Course Cost per Cost per Student Instructor wages $ 2,900 Utilities Classroom supplies Campus rent Insurance $ 270 $ 1,210 $ 65 $ 5,000 $ 2,300 Administrative expenses 009 [ $ $ 40 $6 For example, administrative expenses should be $3,600 per month plus $40 per course plus $6 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September were as follows: Actual $ 53,420 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Required: $ 10,880 $ 17,130 $ 1,880 $ 5,000 $ 2,440 $ 3,570 Prepare a flexible budget performance report for September. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le., zero varlance). Input all amounts as positive values. Courses Students Revenue Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results 53.420 Budget Planning Budget The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Fixed Cost per Month Course Cost per Cost per Student Instructor wages $ 2,900 Utilities Classroom supplies Campus rent Insurance $ 270 $ 1,210 $ 65 $ 5,000 $ 2,300 Administrative expenses 009 [ $ $ 40 $6 For example, administrative expenses should be $3,600 per month plus $40 per course plus $6 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September were as follows: Actual $ 53,420 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Required: $ 10,880 $ 17,130 $ 1,880 $ 5,000 $ 2,440 $ 3,570 Prepare a flexible budget performance report for September. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le., zero varlance). Input all amounts as positive values. Courses Students Revenue Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results 53.420 Budget Planning Budget
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Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
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