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 0662 students enrolled in those two courses. Data concerning the company's cost formulas appear below Fixed Cost per cost per cost per Month Course Student Instructor wages $ 2,970 Classroom supplies $ 290 Utilities $1,240 sas Campus rent $5,000 Insurance $ 2,100 Administrative expenses 53,500 $ 46 5.4 For example, administrative expenses should be $3,600 per month plus $46 per course plus 54 per student. The company's sales should average $900 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 56 students. The actual operating results for September were as follows. Actual Revenue $ 52,900 Instructor wages $11,160 Classroom supplies $ 17,830 utilities $ 1,990 Campus rent $5,000 Insurance Administrative expenses $ 2,240 $ 3,458 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 (.e., zero variance). Input all amounts os positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Planning Budget 4 Courses Students Revenue 56 52.900 3 ine company planned to run tour courses with a total of 2 students, nowever, it actually ran tour courses with a total or only bo students. The actual operating results for September were as follows: Actual Revenue $ 52.900 Instructor wages $ 11,160 Classroom supplies $ 17,830 utilities $ 1,990 Campus rent $5,000 Insurance $ 2,240 Administrative expenses $ 3,458 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 (.e., zero variance). Input all amounts os positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget 4 56 $ 52.900 Planning Budget Courses Students Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,160 17,830 1990 5,000 2.240 3.458 41.678 11,222 $
