Check my work Exercise 9-12 Working with More Than One Cost Driver (LO9-1, LO9-2, LO9-3) 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 63 students enrolled in those two courses. Dato concerning the company's cost formulas appear below: Instructor wages Classroon supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per cost per cost per Month Course Student 52.920 $280 51,240 55 54,800 $2,400 53.00 For example, administrative expenses should be $3.600 per month plus 544 per course plus $3 per student. The company's soles should average 5870 per student The company planned to run four courses with a total of 63 students, however, it actually an tour courses with a total of ony 55 students. The actual operating results for September appear below: Actual Revenue $51.910 Instructor wages 510,960 Classroon supplies $17,490 utilities Campus Pent $ 4,000 Insurance $ 2.540 Administrative expenses $3,393 $1,870 Required: t. Prepare the company's planning budget for September 2. Prepare the company's flexible budget for September w the time warrutta Cana For example, administrative expenses should be $3,600 per month plus $44 per course plus $3 per student. The company's sales should average $870 per student The company planned to run four courses with a total of 63 students, however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Actuat Revenue $51,919 Instructor wages $10,960 Classroom supplies $17,490 Utilities $ 1,870 Campus rent $ 4,800 Insurance $ 2.500 Administrative expenses $ 3,391 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. Required 1 Required 2 Required 3 Prepare the company's planning budget for September Gourmand Cooking School Planning Budget For the Month Ended Setomber 30 ok Prepare the company's planning budget for September Gourmand Cooking School Planning Budget For the Month Ended September 30 Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating Income Hemed Required 2 > Prepare the company's flexible budget for September Gourmand Cooking School Flexible Budget For the Month Ended September 30 es Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Calculate the revenue and spending 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 Revenue and Spending Variances For the Month Ended September 30 Actual Revenue and Spending Results Variances Flexible Budget 4 Courses Students 55 $ 51,910 10,960 17,490 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 1.870 4,800 2,540 3,391 41,051 10,859 $
