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 62 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			$	2,920
Classroom supplies					$	280
Utilities	$	1,200	$	80
Campus rent	$	4,700
Insurance	$	2,200
Administrative expenses	$	3,700	$	43	$	7

For example, administrative expenses should be $3,700 per month plus $43 per course plus $7 per student. The companys sales should average $870 per student.

The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September were as follows:

	Actual
Revenue	$	51,040
Instructor wages	$	10,960
Classroom supplies	$	17,210
Utilities	$	1,930
Campus rent	$	4,700
Insurance	$	2,340
Administrative expenses	$	3,732

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
	Actual Results			Flexible Budget			Planning Budget
Courses	4
Students	56
Revenue	$51,040
Expenses:
Instructor wages	10,960
Classroom supplies	17,210
Utilities	1,930
Campus rent	4,700
Insurance	2,340
Administrative expenses	3,732
Total expense	40,872
Net operating income	$10,168