Accounting

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: Fixed Cost per Cost per Cost per Month Course Instructor wages Student Classroom supplies $ 2, 960 Utilities $260 $ 70 Campus rent $ 1, 210 $4, 700 Insurance $2, 000 Administrative expenses $4, 000 $ 43 5 For example, administrative expenses should be $4,000 per month plus $43 per course plus $5 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below: Actual Revenue $ 50, 420 Instructor wages $ 11,120 Classroom supplies $ 15 , 970 Utilities $ 1,900 Campus rent $ 4,700 Insurance 2, 140 Administrative expenses 3,908 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September. Complete this question by entering your answers in the tabs below