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g courses at its small campus. Management has identified t it uses in its budgeting and performance reports-the number of courses and the total The

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g courses at its small campus. Management has identified t it uses in its budgeting and performance reports-the number of courses and the total The Gourmand Cooking School runs short cooking two cost drivers tha number of stu dents. 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 Cost per Cost per per Month Course Student $2,940 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses 3,600 S 42 S 6 S 290 1,220 $ 85 $ 4,600 $2,000 For example, administrative expenses should be $3,600 per month plus $42 per course plus S6 per student. The company's sales should average $880 per student The actual operating results for September appear below Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 53,420 11,040 $ 18,410 S 1,970 S 4,600 s 2.140 3,578 Required: 1. The Gourmand Cooking School expects to run four courses with a total of 64 students in September Complete the company's planning budget for this level of activity Gourmand Cooking School Planning Budget For the Month Ended ber 30 Revenue Expenses Instructor wages Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 2. The school actually ran four courses with a total of 60 students in September. Complete the company's flexible budget for this level of activity Gourmand Cooking School Flexible Budget For the Month Ended September 30 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 3. Complete the 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). In positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 and Spending Var Variances Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income

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