The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Fixed Cost per Cost per Cost per Month Course $ 2,940 Student $ 280 $ 1,220 $ 55 Campus rent $ 4,800 Insurance $ 2,100 Administrative expenses $ 3,900 $ 44 $ 6 For example, administrative expenses should be $3,900 per month plus $44 per course plus $6 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September were as follows: Revenue Instructor wages Actual $ 51,390 $ 11,040 Classroom supplies $ 16,930 Utilities $ 1,850 Campus rent Insurance Administrative expenses Required: $ 4,800 $ 2,240 $ 3,868 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.) 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 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Fixed Cost per Cost per Cost per Month Course $ 2,940 Student $ 280 $ 1,220 $ 55 Campus rent $ 4,800 Insurance $ 2,100 Administrative expenses $ 3,900 $ 44 $ 6 For example, administrative expenses should be $3,900 per month plus $44 per course plus $6 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September were as follows: Revenue Instructor wages Actual $ 51,390 $ 11,040 Classroom supplies $ 16,930 Utilities $ 1,850 Campus rent Insurance Administrative expenses Required: $ 4,800 $ 2,240 $ 3,868 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.)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Water flows in and out of a storage tank. A graph of the rate of change r(t) of the volume of water in the tank, in liters per day, is shown. If the amount of water in the tank at time t = 0 is...
-
The Snicker Company, the largest manufacturer of Snickerdoodles in State F, decided about two years ago to enter the cookie market in State G. Several small companies in State G manufacture...
-
Shiloh Acres sponsors a defined-benefit pension plan. The corporations actuary provides the following information about the plan. The average remaining service life per employee is 10 years....
-
Would you set different dividend policies based on the perceived demographic of your investor? Does the firm's life cycle impact this decision?
-
Anne withdrew $15,000 from her RRSP under the HBP in May 2016. She was required to repay $1,000 each year beginning in 2018. From 2018 to 2020, inclusive, Anne made her minimum required HBP...
-
As a leader and manager, it is important that you can communicate effectively with diverse groups of people. You will find yourself needing to communicate with low-skilled, entry-level line...
-
Analyze the beginning and ending cash positions from your statement of cash flows from quarter six (Q6) for each of the following: cash flow from operating activities cash flow from investing...
-
It is your job to make sure that all codes are assigned by 5:00 PM each day so that bills get dropped within three days of a patient's discharge. You know you will be reprimanded if this does not...
-
The operating system is the physical environment where applications run. Any vulnerability in the operating system could compromise the security of one or more applications. Threats can come through...
-
For Project , create an infographic that represents YOUR personal brand. Use the work we've done in class (mission statements, skill inventory, etc.) and develop an infographic about YOU that will...
-
1.With which side (conservative or liberal) as related to government involvement in poverty do you agree more? (You should use the ViewPoint section at the end of the chapter.)Explain what areas you...
-
The Income Statement columns of the June 30 (year-end) work P.O. 1 sheet for the Baki Company are shown here. Erom the information given, prepare an income statement for the company. To save time and...
-
Identify each of the following items relating to sections of a bal P.O. 2 ance sheet dated 19x5 as Current Assets (CA), Plant and Equipment (PE), Cur rent Liabilities (CL), Long-Term Liabilities...
-
On December 31, 19x5, the following selected accounts and amounts appeared in the balance sheet. Determine the amount of the working capital and the current ratio. Building Prepaid Insurance...
Study smarter with the SolutionInn App