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 60 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 Cost per cost per per Month Course Student $ 2,930 $310 51,220 $ 70 $ 4,800 $ 2,200 $ 3,800 $ 43 For example, administrative expenses should be $3,800 per month plus $43 per course plus $5 per student. The company's sales should average $890 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 54 students. The actual operating results for September appear below: Revenue Instructor wages classroon supplies Utilities Campus rent Insurance Administrative expenses Actual $ 50,500 $ 11,000 $ 18,450 $ 1,910 $ 4,800 $ 2,340 $ 3,698 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 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the company's planning budget for September Gourmand Cooking School Planning Budget For the Month Ended September 30 Actual courses Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 0 0 $ 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the company's flexible budget for September. Gourmand Cooking School Flexible Budget For the Month Ended September 30 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the revenue and spending 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.) Gourmand Cooking School Revenue and Spending Variances For the Month Ended September 30 Actual Revenue and Spending Flexible Results Variances Budget Courses Students 54 4 $ 50.500 Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,000 18.450 1.910 4.800 2,340 3.698 42,198 8.302 $
