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Ine Gourmand Cooking School runs snort cooking courses at its small campus. Management nas identified two cost drivers it uses in its budgeting and performance
Ine Gourmand Cooking School runs snort cooking courses at its small campus. Management nas 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 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per per Month Course $ 2,920 cost per Student $300 Instructor wages Classroon supplies Utilities Campus rent Insurance Administrative expenses $ 55 $1,200 $5,000 $ 2,300 $3,900 $ 45 $ 7 For example, administrative expenses should be $3,900 per month plus $45 per course plus $7 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 63 students, however, it actually ran four courses with a total of only 59 students. The actual operating results for September appear below: Revenue Instructor wages Classroon supplies Utilities Campus rent Insurance Administrative expenses Actual $ 51,280 $ 10,960 $18.75e $ 1,830 $ 5.000 $ 2.44 $ 3.947 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 (.e., zero
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