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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost Cost per per Month Course $ 2,940 $ $1,240 $4,900 $2,200 $3,500 $ 40 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 52,140 $ 11,040 $ 18,410 65 For example, administrative expenses should be $3,500 per month plus $40 per course plus $4 per student. The company's sales should average $860 per student. $ 1,910 $ 4,900 Cost 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 56 students. The actual operating results for September were as follows: $ 2,340 $ 3,342 $ 290 $ 4 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 Prev 1 of 3 www Next >

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 64 students enrolled in those fwo courses. Data concerning the company's cost formulas appear below: For example, administrative expenses should be $3,500 per month plus $40 per course plus $4 per student. The company's sales should average $860 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 56 students. The actual operating resuits for September were as follows: 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 fovorable, "U" for unfovorable, ond "None" for no effect (i.e., zero voriance). Input all omounts as positive volues.) You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and "do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: During March, the company worked 20,000 machine hours and produced 14,000 units. The company had originally planned to work 22,000 machine-hours during March Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. Complete this question by entering your answers in the tabs below. Calculate the activity variances for March. (Indicate the effoct of each variance by solecting "F" for fovorable, "W" for untavorable, and "None" for no eftect (i.e, zero variance). Input all amounts as positive values.)