Real Potential Training has used the following budgeted amounts for its controllable costs during 2025.

Required

(a) Prepare a budget performance report for 2025 by preparing a budget for each cost item based on its fixed cost plus the variable cost per student multiplied by the actual number of students enrolled. Compare this budget for 3 000 students with the actual costs incurred.

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Cost items Fixed amount Administration salaries $250 000 Electricity 62 200 Maintenance Supplies Copying Government charges 55 000 36 600 62 000 72 000 Variable cost per student enrolled $ 4.20 0.72 0.80 3.20 30.00 The actual enrolment for the institute for the year was 3 000 students. The actual costs incurred for the year were as follows. Administration salaries Electricity Maintenance Supplies Copying Government charges $275 800 51 380 51 400 33 200 65 200 78 000