6 Exercise 9-6 (Algo) Working with More Than One Cost Driver (LO9-2, LO9-3, LO9-5, LO9-6) 10 points The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-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 65 students enrolled in those two courses. Data concerning the company's cost formulas appear below: cBook Fixed Cost per cost per cost per Month Course Student $ 2,940 $300 $1,200 $ 65 $ 5,100 $2,200 $ 3,500 Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Print References For example, administrative expenses should be $3,500 per month plus $41 per course plus $3 per student. The company's sales should average $850 per student. The company planned to run four courses with a total of 65 students; however, it actually ran four courses with a total of only 61 students. The actual operating results for September were as follows: Revenue Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $52,350 $11,040 $19,350 $ 1,870 $ 5,100 $ 2,340 $ 3,285 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Planning Budget Courses 4 Students 61 $ 52,350 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,040 19,350 1,870 5,100 2,340 3,285 42.985 $ 9,365