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 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below: For example, administrative expenses should be $3,800 per month plus $42 per course plus $6 per student. The company's sales should average $880 per student. Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost per Cost per Month Course Student $ 2,980 $280 $1,220 $ 50 $4,500 $2,200 $3,800 $ 42 Actual $50,780 $ 11, 200 $ 16,930 $ 1,830 $ 4,500 $ 2,340 $ 3,760 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 51 students. The actual operating results for September appear below: 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 1 Required 2 Required 3 Prepare the company's flexible budget for Septemt Calculate the revenue and spending variances for September. (Indicate the effect of each favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amou Gourmand Cooking School Planning Budget For the Month Ended September 30 Budgeted courses Budgeted students 61 Gourmand Cooking School Flexible Budget For the Month Ended September 30 Actual courses Actual students Gourmand Cooking School Revenue and Spending Variances For the Month Ended September 30 Actual Revenue and Spending Results Variances 4 $ 53,680 Flexible Budget Courses Students 11,920 51 $ 50,780 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 17,080 1,420 4,500 2,200 4.334 41,454 12.226 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income $ 11,200 16,930 1,830 4,500 2,340 3,760 40,560 10,220 $ 0 $
