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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

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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 appear below: two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas Fixed Cost Cost per Cost per per Month Course Student Instructor wages 18 2920 Classroom supplies Utilities $ 280 $ 1 230 Campus rent $4 790 Insurance $ 2, 408 Administrativ $4,008 For example, administrative expenses should be $4,000 per month plus $42 per course plus $7 per student. The company's sales should average $900 per student. The company planned to run four courses with a total of 63 students, however, it actually ran four courses with a total of only 53 students. The actual operating results for September appear below, Revenue $ 53,800 Instructor wages $ 10, 968 Classroom supplies $ 17, 490 Utilities $ 1, 880 Campus rent $ 4, 790 Insurance $ 2,540 Administrative expenses $ 4,035 Required: 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 (l.e., zero varlance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Planning Actual Results Budget Budget Courses Students 53 Revenue 53.800 Expenses: Instructor wages 10.980 Classroom supplies 17.490 Utilities 1,880 Campus rent 4,700 Insurance 2.540 Administrative expenses 4.035 Total expense 41.605 Net operating income 12. 195

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