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 company's cost formulas appear below: Fixed Cost Cost per per Month Course $ 2,920 cost per Student $ 310 $ 85 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 1,220 $ 4,800 $ 2,300 $3,600 $ 43 $ 3 For example, administrative expenses should be $3,600 per month plus $43 per course plus $3 per student. The company's sales should average $880 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 54 students. The actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 51,660 $ 10,960 $ 19,070 $ 1,970 $ 4,800 $ 2,440 $ 3,384 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget Courses Students 54 54 Revenue $ 51,660 Expenses: Instructor wages Classroom supplies Utilities 10,960 19,070 1,970 Campus rent 4,800 Insurance 2,440 Administrative expenses Total expense Net operating income 3,384 42,624 9,036