PLEASE ASAP

1. The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reportsthe 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 50 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month	Cost per Course	Cost per Student
Instructor wages		$ 3,080
Classroom supplies			$ 260
Utilities	$ 870	$ 130
Campus rent	$ 4,200
Insurance	$ 1,890
Administrative expenses	$ 3,270	$ 15	$ 4

For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The companys sales should average $800 per student.

The company planned to run three courses with a total of 45 students; however, it actually ran three courses with a total of only 42 students. The actual operating results for September were as follows:

	Actual
Revenue	$ 32,400
Instructor wages	$ 9,080
Classroom supplies	$ 8,540
Utilities	$ 1,530
Campus rent	$ 4,200
Insurance	$ 1,890
Administrative expenses	$ 3,790

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 (i.e., zero variance). Input all amounts as positive values.)

2. Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companys planning budget for May appears below:

Puget Sound Divers Planning Budget For the Month Ended May 31
Budgeted diving-hours (q)	100
Revenue ($365.00q)	$ 36,500
Expenses:
Wages and salaries ($8,000 + $125.00q)	20,500
Supplies ($3.00q)	300
Equipment rental ($1,800 + $32.00q)	5,000
Insurance ($3,400)	3,400
Miscellaneous ($630 + $1.80q)	810
Total expense	30,010
Net operating income	$ 6,490

During May, the companys actual activity was 105 diving-hours.

Required:

Prepare a flexible budget for May.

3. Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 80 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month	Cost per Cruise	Cost per Passenger
Vessel operating costs	$ 5,200	$ 480.00	$ 2.00
Advertising	$ 1,700
Administrative costs	$ 4,300	$ 24.00	$ 1.00
Insurance	$ 2,900

For example, vessel operating costs should be $5,200 per month plus $480 per cruise plus $2 per passenger. The companys sales should average $25 per passenger. In July, the company provided 24 cruises for a total of 1,400 passengers.

Required:

Prepare the companys flexible budget for July.

Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Actual Results Budget Planning Budget 3 42 $ 32,400 Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 9,080 8,540 1,530 4,200 1,890 3,790 29,030 3,370 $ Puget Sound Divers Flexible Budget For the Month Ended May 31 Actual diving-hours Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income $ 0 0 Alyeski Tours Flexible Budget For the Month Ended July 31 Revenue Expenses: Vessel operating costs Advertising Administrative costs Insurance Total expense Net operating income 0 $ 0