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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost per Month Cost per Course $ 2,970 Student $ 290 $ 1,200 $ 85 $ 5,000 $ 2,100 $ 3,500 $ 43 $6 For example, administrative expenses should be $3,500 per month plus $43 per course plus $6 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 58 students. The actual operating results for September were as follows: Actual Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 52,140 $ 11,160 $ 18,410 $1,950 $ 5,000 $ 2,248 $ 3,482 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. Note: Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values. Courses Students Revenue Answer is complete but not entirely correct. Gourmand Cooking School Flexible Budget Performance Report Actual Results For the Month Ended September 30 Revenue and Spending Varlances Flexible Activity Variances Budget Planning Budget 4 3 4- 58 58 64 52,140 $ 2,260 F $ 49,880 $5,160 U S 55,040 Expenses: Instructor wages 11,160 2,250 U Classroom supplies 18,410 1,590 U 3 8,910x 2,970 None 11,880 16,820 1,740 F 18,560 Utilities 1,950 495 U Campus rent 5,000 None Insurance 2,240 140 U Administrative expenses 3,482 495 F Total expense 42,242 3,980 U 66666 1,455x 5,000 85 None 1,540 0 None 5,000 2,100 0 None 2,100 3,977x 79 F 4,056 38,262x 4,874 F 43,136 Net operating income $ 9,898 $ 1,720 U $ 11,618 S 286 U $ 11,904