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 62 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Fixed Cost per Cost per Cost per Month Course $ 2,970 Student $ 300 $ 65 Utilities $ 1,220 Campus rent $ 4,900 Insurance $ 2,100 Administrative expenses $ 3,900 $ 43 $ 7 For example, administrative expenses should be $3,900 per month plus $43 per course plus $7 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September were as follows: Revenue Actual $ 50,420 Instructor wages $ 11,160 Classroom supplies $ 18,450 Utilities $ 1,890 Campus rent $ 4,900 Insurance $ 2,240 Administrative expenses $ 3,932 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. Note: 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 Flexible Budget Performance Report For the Month Ended September 30 Courses Students Revenue and Actual Results Spending Variances Flexible Budget Activity Variances Planning Budget 4 56 50,420 Revenue Expenses: Instructor wages 11,160 Classroom supplies 18,450 Utilities 1,890 Campus rent 4,900 Insurance 2,240 Administrative expenses 3,932 Total expense Net operating income 42,572 $ 7,848