The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that 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 61 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			$	2,960
Classroom supplies					$	300
Utilities	$	1,200	$	70
Campus rent	$	4,500
Insurance	$	2,100
Administrative expenses	$	3,900	$	42	$	5

For example, administrative expenses should be $3,900 per month plus $42 per course plus $5 per student. The companys sales should average $850 per student.

The actual operating results for September appear below:

		Actual
Revenue	$	48,950
Instructor wages	$	11,120
Classroom supplies	$	18,150
Utilities	$	1,890
Campus rent	$	4,500
Insurance	$	2,240
Administrative expenses	$	3,799

Required:
1.	The Gourmand Cooking School expects to run four courses with a total of 61 students in September. Complete the companys planning budget for this level of activity.

Gourmand Cooking School

Planning Budget

For the Month Ended Sept 30

Revenue
Expenses:
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Total expense
Net operating income	$

2.	The school actually ran four courses with a total of 55 students in September. Complete the companys flexible budget for this level of activity.

Gourmand Cooking School

Flexible Budget

For the Month Ended Sept 30

Revenue
Expenses:
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Total expense
Net operating income	$

3.	Calculate the revenue and spending 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 Sept 30

Revenue and Spending Variances

Revenue
Expenses:
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Total expense
Net operating income	$