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 65 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 $ 2,940 Classroom supplies $ 270 Utilities $ 1,240 $ 65 Campus rent $ 4,900 Insurance $ 2,300 Administrative expenses $ 3,800 $ 42 $ 5

For example, administrative expenses should be $3,800 per month plus $42 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 65 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September appear below:

Actual Revenue $ 53,650 Instructor wages $ 11,040 Classroom supplies $ 17,400 Utilities $ 1,910 Campus rent $ 4,900 Insurance $ 2,440 Administrative expenses $ 3,719

Required:

1. Prepare the companys planning budget for September.

2. Prepare the companys flexible budget for September.

3. Calculate the revenue and spending variances for September.