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. Data concerning the company's cost formulas appear below: Fixed Cost Cost per per Month Course $ 2,970 Cost per Student $280 $ 75 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 1,240 $ 5,eee $ 2,400 $ 3,789 $ 43 $ 5 For example, administrative expenses should be $3,700 per month plus $43 per course plus $5 per student. The company's sales should average $890 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 57 students. The actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 53,170 $ 11, 160 $ 17,490 $ 1,950 $ 5, $ 2,540 $ 3,613 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 Prepare the company's flexible budget for September. Gourmand Cooking School Flexible Budget For the Month Ended September 30 4 Actual courses Actual students 57 S 50,730 Revenue Expenses Instructor wages Classroom supplies Utilities students. Ine actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 53,170 $ 11,160 $ 17,490 $ 1,950 $ 5,00 $ 2,540 $ 3,613 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 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 Flexible Results Variances Budget Courses Students 57 4 S 53,170 Revenue Expenses Instructor wages Classroom supplies 11,180 17.400 1.950 Utilities 5,000 Campus rent Insurance Administrative expenses Total expense 2,540 3.613 41,753 11,417 Net operating income S Required 2 Required 3 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 flexible budget for September. Gourmand Cooking School Flexible Budget For the Month Ended September 30 Actual courses Actual students 57 4 S 50,730 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 0 S 50.730
