Question
Ameigh Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The
Ameigh Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers), namely student and course. The school uses the following data in its budgeting:
| Fixed element per month | Variable element per student | Variable element per course |
Revenue | $0 | $335 | $0 |
Faculty wages | $0 | $0 | $2,600 |
Course supplies | $0 | $54 | $18 |
Administrative expenses | $38,600 | $13 | $30 |
In June, the school budgeted for 1,890 students and 146 courses. The actual activity for the month was 2,290 students and 151 courses. Required: Prepare a report showing the school's activity variances for June. Label each variance as favorable (F) or unfavorable (U).
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