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 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost per Month Cost per Course $ 2,950 Cost per Student $ 3ee $ 6e Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 1,219 $ 4,600 $ 2, eee $ 4, eee $ 46 $ 5 For example, administrative expenses should be $4,000 per month plus $46 per course plus $5 per student. The company's sales should average $900 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 51 students. The actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 52,000 $ 11,080 $ 18,150 $ 1,860 $ 4,6ee $ 2,140 $ 3,915 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending varlances for September. Complete this question by entering your answers in the tabs below. Required 1 1 Required 2 Required 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 Revenue and Spending Variances For the Month Ended September 30 Actual Revenue and Spending Results Variances Flexible Budget Courses 4 4 Students 51 51 Revenue s 52.000 $ 8,140 F S 43,900 Expenses: Instructor wages Classroom supplies 11.080 18,150 U Utilities 1,860 Campus rent U U 4.600 2,140 Insurance U Administrative expenses 3.915 F Total expense 41.745 U Net operating income s 10.255
