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.

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.) Answer is complete but not entirely correct. Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Revenue and Spending Variances Budget Activity Variances Actual Results Planning Budget 3 Courses Students 3 42 42 45 $ 32,400 $ 1,200 U $ 33,600 $ U 1 X 160 F 9,240 > 9,240 OO F 2,380 270 >ISIS U Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 0 9.080 8.540 1,530 4,200 1,890 3,790 29,030 3,370 0 None 1 X F 0 None 0 None 0 None 1 F None 10.920 1,260 4.200 1.890 3,483 30,993 $ 2,607 1 X 1,260 4,200 1,890 1 X 0 None 307 U OC F 1 XF 1 X 1,963 763 VIS $ $ F $ 1 x U IS 1 X