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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 62 students enrolled in those two courses. Dato concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Pixea Cost per cost per Cost per Month Course student $ 2,960 $ 270 $1,210 $ 65 54,700 $2,300 $3,900 For example, administrative expenses should be $3,900 per month plus $43 per course plus $6 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 ran four courses with a total of only 60 students. The actual operating results for September were as follows: Revenue Instructor wages Classroom mupplies Utilities Campus rent Insurance Administrative expenses Actual $49,800 $11,120 516,590 $ 1.880 $ 4.700 $ 2,440 $ 3,870 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 as positive values.) Gourmand Cooking School Flexiblo Budget Performance Report For the Month Ended September 30 Flexible Actual Results Budget Planning Budget 4 Courses Students 60 $ 49,800 Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Not operating income 11,120 16,590 1,880 4.700 2.440 3,870 40.600 9,200 5

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