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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. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per cost per cost per Month Course Student $ 2,950 $290 $1,240 $ 75 $5,200 $2,300 $3,600 $ 41 $ 6 For example, administrative expenses should be $3,600 per month plus $41 per course plus $6 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 52 students. The actual operating results for September were as follows: Actual Revenue $50,420 Instructor wages $11,080 Classroon supplies $17,830 Utilities $ 1,950 Campus rent $ 5,200 Insurance $ 2,440 Administrative expenses $ 3,562 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.) 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.) Book Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Print Planning Budget 4 ferences Courses Students 52 $ 50,420 Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expertos Total expense Net operating income 11,080 17.830 1.950 5,200 2440 3.562 42,062 8.358 $

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