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 64 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			$	2,910
Classroom supplies					$	260
Utilities	$	1,210	$	75
Campus rent	$	4,800
Insurance	$	2,100
Administrative expenses	$	3,500	$	43	$	5

For example, administrative expenses should be $3,500 per month plus $43 per course plus $5 per student. The companys sales should average $870 per student.

The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 58 students. The actual operating results for September appear below:

	Actual
Revenue	$	52,780
Instructor wages	$	10,920
Classroom supplies	$	16,490
Utilities	$	1,920
Campus rent	$	4,800
Insurance	$	2,240
Administrative expenses	$	3,418

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 58 Revenue $ 52,780 Expenses: Instructor wages Classroom supplies 10,920 16,490 1,920 4,800 Utilities Campus rent Insurance 2,240 Administrative expenses Total expense 3,418 39,788 12,992 Net operating income $