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Exercise 9-6 (Algo) Working with More Than One Cost Driver (L09-2, L09-3, L09-5, L09-6] 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 (L09-2, L09-3, L09-5, L09-6] 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 Classroon supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per cost per cost per Month Course Student 52,930 5290 51,240 S 65 $4,600 $2,200 $1,300 3 For example, administrative expenses should be $3,800 per month plus $41 per course plus $3 per student. The company's sales should average $880 per student For example, administrative expenses should be $3,800 per month plus $41 per course plus $3 per student. The company's sales should average $880 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 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $51,660 $11.000 $17.030 $ 1,910 $4,600 $ 2,340 $ 3,576 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 (1.e., zero variance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Actual Results Budget Planning Budget 4 Courses Students 56 $ 51,660 Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,000 17,830 1.910 4,600 2.340 3,576 41.256 10,404 $

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