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 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Pixed Cost per Cost per Cost per Mo nth Course Student 2,950 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $300 $1,230 80 5,000 $2,300 $3,60041 7 For example, administrative expenses should be $3,600 per month plus $41 per course plus $7 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual 52,540 11,080 18,750 1,960 $ 5,000 $ 2,440 3,631 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 variances for September Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Prepare the company's planning budget for September Gourmand Cooking School Planning Budget For the Month Ended September 30 Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Required Required 2> Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Prepare the company's flexible budget for September Gourmand Cooking School Flexible Budget For the Month Ended September 30 Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Required 1 Required 3 > Complete this question by entering your answers in the tabs below Required 1 Required 2 Required3 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 Results Revenue and Spending Variances Flexible Budget Courses Students Revenue $ 52,540 Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses 11,080 18,750 1,960 5,000 2,440 3,631 42,861 9,679 Total expense Net operating income Required 2 Required 3
