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 60 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$2,920Classroom supplies$310Utilities $1,230 $75Campus rent $4,800Insurance $2,200Administrative expenses $3,700$40$4

For example, administrative expenses should be $3,700 per month plus $40 per course plus $4 per student. The company's sales should average $860 per student.

The company planned to run four courses with a total of 60 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below:

ActualRevenue$48,700Instructor wages$10,960Classroom supplies$18,450Utilities$1,940Campus rent$4,800Insurance$2,340Administrative expenses$3,526

Required:

1. Prepare the company's planning budget for September.

2. Prepare the company's flexible budget for September.

3. Calculate the revenue and spending variances for September.