Flexible budgets and variance analysis

Mary is a principal of a school which provides education and accommodation for students. The school secretary prepared the following summary of costs for 2020, including a column showing the original budget for 2020.

The School - cost analysis	2020 budget	2020 actual
Number of students	200	180
Fixed costs
Utilities	$ 60,000	$ 64,000
Janitorial services	40,000	38,000
Repairs and maintenance	32,000	28,000
Salaries for non-convent employees	180,000	190,000
Total fixed costs	312,000	320,000
Variable costs
Food	1000,000	920,000
Clothing	90,000	82,000
Laundry & Linen Service	30,000	25,000
Educational costs	60,000	52,000
Allowances	50,000	48,000
Total variable costs	1,230,000	1,127,000
Total Costs	1,542,000	1,447,000

Mary is pleased that total costs were below budget for the year, but she wonders if this is partly due to the fact that the school enrolled fewer children than expected for the year.

Required:

1. Prepare a flexible budget for 2020, based on the number of children actually enrolled in 2020.
2. Should Mary be satisfied with the school's cost management in 2020? Explain.