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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 for-profit vocational school. The school bases its budgets on two measures of activity (i.e., 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 $ 0 $ 212 $ 0
Faculty wages $ 0 $ 0 $ 2,100
Course supplies $ 0 $ 37 $ 45
Administrative expenses $ 28,800 $ 6 $ 26
In June, the school budgeted for 1,910 students and 111 courses. The school's income statement showing the actual results for the month appears below:
Hislop Tech
Income Statement
For the Month Ended June 30
Actual students 1,810
Actual courses 106
Revenue $ 387,740
Expenses:
Faculty wages 218,200
Course supplies 72,360
Administrative expenses 41,716
Total expense 332,276
Net operating income $ 55,464
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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