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Exercise 9-6 (Algo) Working with More Than One Cost Driver (LO9-2, LO9-3, LO9-5, LO9-6] The Gourmand Cooking School runs short cooking courses at its small

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Exercise 9-6 (Algo) Working with More Than One Cost Driver (LO9-2, LO9-3, LO9-5, LO9-6] 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 Marith Course 5 2,940 Cost per Student $ 280 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses 5 55 31.240 5 4,500 $ 2,300 $ 3,500 $ 44 54 For example, administrative expenses should be $3,500 per month plus $44 per course plus $4 per student. The company's sales should average $860 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 61 students. The actual operating results for September were as follows: Revenue Instructor wages Classroon supplies Utilities Campus rent Insurance Administrative expenses Actual $ 51,280 $ 11,040 $ 17,490 $ 1.270 $4,500 $ 2,440 $ 3,354 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts os positive values.) Gourmand Cooking School Flexible Bogat Performance Report For the Month Ended September 30 Actual Results Flexible Planning Budget Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 51,280 $ 11,040 $ 17,490 $ 1,870 $4,560 $ 2,440 $ 3,354 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity 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 os positive values.) Gourmand Cooking School Flexible Budget Porformance Report For the Month Ended September 30 Flexible Actual Results Budget Planning Budget Courses Students 4 61 $ 51,280 Revenue Expenses Instructor wages Classroom Supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11.040 17.490 1,870 4.500 2,440 3.354 40,694 10,586 5

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