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$$the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of $62$ students enrolled in those two courses. Data concerning the company$$s cost formulas appear below:

Fixed Cost per Month Cost per Course Cost per

Student

Instructor wages $ $2,950$

Classroom supplies $ $290$

Utilities $ $1,220$ $ $80$

Campus rent $ $5,000$

Insurance $ $2,100$

Administrative expenses $ $3,600$ $ $40$ $ $7$

For example, administrative expenses should be $$3,600$ per month plus $$40$ per course plus $$7$ per student. The company$$s sales should average $$870$ 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 $58$ students. The actual operating results for September were as follows:

Actual

Revenue $ $51,040$

Instructor wages $ $11,080$

Classroom supplies $ $17,830$

Utilities $ $1,950$

Campus rent $ $5,000$

Insurance $ $2,240$

Administrative expenses $ $3,620$

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September.