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			$	2,960
Classroom supplies					$	300
Utilities	$	1,210	$	70
Campus rent	$	5,000
Insurance	$	2,300
Administrative expenses	$	3,700	$	46	$	6

For example, administrative expenses should be $3,700 per month plus $46 per course plus $6 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 59 students. The actual operating results for September were as follows:

	Actual
Revenue	$	53,650
Instructor wages	$	11,120
Classroom supplies	$	19,350
Utilities	$	1,900
Campus rent	$	5,000
Insurance	$	2,440
Administrative expenses	$	3,700

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	Revenue and Spending Variances	Revenue and Spending Variances	Flexible Budget	Activity Variances	Activity Variances	Planning Budget
Courses	4			4			4
Students	59			59			59
Revenue	$53,650	$2,320	F	$51,330	$5,220	U	$56,550
Expenses:
Instructor Wages	11,120	720	F	11,840	0	NONE	11,840
Classroom Supplies	19,350	1,650	U	17,700	1,800	F	19,500
Utilities	1,900	410	U	1,490	0	NONE	1,490
Campus Rent	5,000	0	NONE	5,000	0	NONE	5,000
Insurance	2,440	140	U	2,300	0	NONE	2,300
Administrative Expenses	3,700	538	F	4,238	36	F	4,274
Total Expenses	43,510	942	U	42,568	1,836	F	44,404
Net Operating Income	10,140		F			U