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 reports$$the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of $62$ students enrolled in those two courses. Data concerning the company$$s cost formulas appear below:

Fixed Cost per Month Cost per Course Cost per

Student

Instructor wages $ $2,940$

Classroom supplies $ $290$

Utilities $ $1,220$ $ $75$

Campus rent $ $5,200$

Insurance $ $2,400$

Administrative expenses $ $3,500$ $ $42$ $ $4$

For example, administrative expenses should be $$3,500$ per month plus $$42$ per course plus $$4$ per student. The company$$s sales should average $$890$ 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 appear below:

Actual

Revenue $ $52,280$

Instructor wages $ $11,040$

Classroom supplies $ $17,830$

Utilities $ $1,930$

Campus rent $ $5,200$

Insurance $ $2,540$

Administrative expenses $ $3,342$

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.$)$

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.$)$