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 60 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Fixed Cost Cost per per Month Cost per Course Student Instructor wages Classroom supplies Utilities Campus reat $2.920 $ 260 $ 1,200 $ 60 Insurance Administrative expenses $ 4,500 $2,100 $3,600 $ 45 $7 For example, administrative expenses should be $3,600 per month plus $45 per course plus $7 per student. The company's sales should average $890 per student The company planned to run four courses with a total of 60 students, however, it actually ran four courses with a total of only 58 students. The actual operating results for September were as follows: Actual Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Required: $ 50, 500 $ 10,960 $ 15,450 $ 1,850 $ 4.500 $2,240 $ 3,626 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 (ie., zero variance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget Courses Students 4 41 4 58 58 60 Revenue $ 50,500 $ 51,620) Expenses: Instructor wages Classroom supplies Ubilities Campus rent Insurance Administrative expenses Total expense Net operating income 10,960 15,450 1,850 4,500 2,240 3,626 38,620 S 11,874 11,680 2,080