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 64 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

For example, administrative expenses should be $3,700 per month plus $41 per course plus $7 per student. The companys sales should average $890 per student.

The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September appear below:

Fixed Cost Cost Cost per Month per Course Student per Instructor wages Classroom supplies Utilities $2,930 $310 $1,240 $ $5,000 $2,200 55 Campus rent Insurance Administrative $ 7 $3,700 $ 41 expenses Actual $54,060 $11,000 $19,690 $ 1,870 $ 5,000 $ 2,340 Revenue Instructor wages Classroom Utilities supplies Campus rent Insurance Administrative $3,738 expenses 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.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Planning Budget Actual Flexible Results Budget Courses Students 4 60 Revenue Expenses: Instructor wages Classroom supplies 54,060 11,000 19,690 Utilities 1,870 Campus rent 5,000 Insurance 2,340 Administrative 3,738 expenses Total expense Net operating income 43,638 $ 10,422