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			$	2,930
Classroom supplies					$	270
Utilities	$	1,220	$	60
Campus rent	$	4,900
Insurance	$	2,100
Administrative expenses	$	3,800	$	45	$	6

For example, administrative expenses should be $3,800 per month plus $45 per course plus $6 per student. The companys sales should average $900 per student.

The actual operating results for September appear below:

Actual

Revenue

$

52,000

Instructor wages

$

11,000

Classroom supplies

$

16,320

Utilities

$

1,870

Campus rent

$

4,900

Insurance

$

2,240

Administrative expenses

$

3,772

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.

2.

The school actually ran four courses with a total of 53 students in September. Complete the companys flexible budget for this level of activity.

3.	Calculate the revenue and spending variances for September