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Hislop Tech is a for - profit vocational school. The school bases its budgets on two measures of activity ( i . e . ,
Hislop Tech is a forprofit vocational school. The school bases its budgets on two measures of activity ie cost drivers namely student and course. The school uses the following data in its budgeting:
Fixed element per month Variable element per student Variable element per course
Revenue $ $ $
Faculty wages $ $ $
Course supplies $ $ $
Administrative expenses $ $ $
In June, the school budgeted for students and courses. The school's income statement showing the actual results for the month appears below:
Hislop Tech
Income Statement
For the Month Ended June
Actual students
Actual courses
Revenue $
Expenses:
Faculty wages
Course supplies
Administrative expenses
Total expense
Net operating income $
Required:
Prepare a report showing the school's revenue and spending variances for June. Label each variance as favorable F or unfavorable U
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