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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Month Course $ 2,970 Cost per Student $ 290 $ 70 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 1,230 $5,100 $2,100 $3,800 $ 41 $ 6 For example, administrative expenses should be $3,800 per month plus $41 per course plus $6 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 58 students. The actual operating results for September were as follows: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 54,060 $ 11,160 $ 18,410 $ 1,920 $ 5,100 $ 2,240 $ 3,774 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.) 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 4 4 4 Students 58 58 64 Revenue $ 54,060 Expenses: Instructor wages Classroom supplies 11,160 18,410 Utilities 1,920 Campus rent 5,100 Insurance 2,240 Administrative expenses 3,774 Total expense 42,604 Net operating income $ 11,456