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 62 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			$	2,970
Classroom supplies					$	280
Utilities	$	1,230	$	75
Campus rent	$	4,700
Insurance	$	2,200
Administrative expenses	$	4,000	$	43	$	5

For example, administrative expenses should be $4,000 per month plus $43 per course plus $5 per student. The companys sales should average $860 per student.

The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September appear below:

	Actual
Revenue	$	50,420
Instructor wages	$	11,160
Classroom supplies	$	17,210
Utilities	$	1,940
Campus rent	$	4,700
Insurance	$	2,340
Administrative expenses	$	3,908

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.)

2 (Indicate the effect of each variance by selecting "F" for favorable, "U" for untavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 25 points Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Planning Budget eBook Courses 4 4 4 Print Students 60 60 62 References Revenue $ 50,420 U U $ 53,320 F None Expenses: Instructor wages Classroom supplies Utilities U F U None None None Campus rent Insurance 11,160 17,210 1,940 4,700 2,340 3,908 41,258 9,162 None Administrative expenses F F Total expense F IF Net operating income $ U U