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 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 Student $2,920 5-290 Instructor wages Classroon supplies utilities Conus rent Insurance Administrative expenses $ $1,240 54.900 $2,100 $4,00 For example, administrative expenses should be $4,000 per month plus $44 per course plus $4 per student. The company's sales should average $850 per student The company planned to run four courses with a total of 62 students, however, it actually ron four courses with a total of only 52 students. The actual operating results for September appear below: ACTURT Revenue $ 49,00 Instructor wages $10.960 Classroom supplies $17,30 UELLE $1,970 $ 4,900 Insurance 2.240 Administrative expenses $ 3.850 Campus rent 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 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 Required 1 Required 2 Required 3 Prepare the company's flexible budget for September. Gourmand Cooking Schctor Flexible Budget For the Month Ended September 30 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Required: Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Calculate the revenue and spending variances for September. (Indicate the e favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance) Gourmand Cooking School Revenue and Spending Variances For the Month Ended September 30 Actual tevenue and Spending Results Variances 4 Flexible Budget Courses Students 52 Revenue $ 49,800 Expenses: Instructor wages Classroom supplies 10,960 17,830 1,970 4,900 Utilities Campus rent Insurance Administrative expenses Total expense Nel operating income 2,240 3,850 41.750 8,050 S Required 2