Problem #3 (33 points) Company XYZ offers test prep courses. The company uses the number of courses and the number of students as its two measures of activity. Data concerning its operations is as follows: (b) Provide a brief explanation of the instructor wages spending variance from the flexible budget performance report you made in (a). What does this variance tell us about instructor wages (other than being favorable/unfavorable)? Fixed Variable Component Component per month per course Variable Component per student $900 Actual Results for May $170.000 $20.000 $42.500 S2.300 $3.700 Revenue Instructor wages Classroom supplies Utilities Administrative expenses S3,000 $250 $850 $2,500 S120 S25 $5 In May, the company expected to offer 9 courses and have 175 students, however, it actually run 8 courses with 200 students. Required (show all work): (a) Using the above data and the form provided below, prepare a flexible budget performance report for Company XYZ for the month of May. Company XYZ Flexible Budget Performance Report for the month ended May 31