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 reportsthe 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 companys cost formulas appear below:

Fixed Cost per MonthCost per CourseCost per StudentInstructor wages $ 2,970 Classroom supplies $ 290Utilities$ 1,240$ 85 Campus rent$ 4,800 Insurance$ 2,300 Administrative expenses$ 3,600$ 41$ 4

For example, administrative expenses should be $3,600 per month plus $41 per course plus $4 per student. The companys 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 57 students. The actual operating results for September were as follows:

ActualRevenue$ 51,280Instructor wages$ 11,160Classroom supplies$ 18,120Utilities$ 1,990Campus rent$ 4,800Insurance$ 2,440Administrative expenses$ 3,442

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 as positive values.) | Picture of question

Exerclse 9-6 (Algo) Worklng with More Than One Cost Drlver [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: For example, administrative expenses should be \\( \\$ 3,600 \\) per month plus \\( \\$ 41 \\) 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 57 students. The actual operating results for September were as follows: Requlred: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indlcate the effect of each vorlance by selecting \"F\" for fovorable, \"U\" for unfovorable, and \"None\" for no effect (l.e., zero vorlance). Input all amounts as positlve volues.)