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 64 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month		Cost per Course		Cost per Student
Instructor wages			$	2,960
Classroom supplies					$	270
Utilities	$	1,200	$	65
Campus rent	$	5,100
Insurance	$	2,000
Administrative expenses	$	3,600	$	42	$	5

For example, administrative expenses should be $3,600 per month plus $42 per course plus $5 per student. The companys sales should average $890 per student.

The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September appear below:

	Actual
Revenue	$	54,060
Instructor wages	$	11,120
Classroom supplies	$	17,130
Utilities	$	1,870
Campus rent	$	5,100
Insurance	$	2,140
Administrative expenses	$	3,514

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 (i.e., zero variance). Input all amounts as positive values.)

Gourmand Cooking School
Flexible Budget Performance Report
For the Month Ended September 30
	Actual Results			Flexible Budget			Planning Budget
Courses	4
Students	60
Revenue	$54,060
Expenses:
Instructor wages	11,120
Classroom supplies	17,130
Utilities	1,870
Campus rent	5,100
Insurance	2,140
Administrative expenses	3,514
Total expense	40,874
Net operating income	$13,186