7 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 62 students enrolled in those two courses. Data concerning the company's cost formulas appear below: 3.33 points Fixed Cost per Cost per Cost per Month Student Course $2,910 Instructor wages classroom supplies $280 ook Utilities $1,200 $4,800 $ 60 Campus rent $2,100 Insurance Print Administrative expenses $3,700 40 3 For example, administrative expenses should be $3,700 per month plus $40 per course plus $3 per student. The company's sales should average $870 per student. References The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September appear below Actual $51,040 $10,920 $17,210 S 1,850 $ 4,800 Revenue Instructor wages classroom supplies Utilities Campus rent $2,240 Insurance Administrative expenses $3,472 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 Flexible Planning Budget Results Budget Courses 4 Students 54 Revenue $ 51,040 Expenses: Instructor wages 10,920 Classroom supplies 17,210 Utilities 1,850 Campus rent 4,800 Insurance 2,240 Administrative expenses 3,472 Total expense 40,492 Net operating income 10,548