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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 two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost Cost per per per Month Course Student Instructor wages $ 2,960 classroom supplies $ 280 Utilities $1,200 $ 55 Campus rent $4,900 Insurance $2,100 Administrative $ 3,500 $ 42 $ 4 expenses For example, administrative expenses should be $3,500 per month plus $42 per course plus $4 per student. The company's sales should average $880 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 61 students. The actual operating results for September appear below: Actual Revenue $ 52,540 Instructor wages $11,120 Classroom supplies $17,490 Utilities $ 1,830 Campus rent $ 4.900 Insurance $ 2,240 Administrative $ 3,346 expenses 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 (ie., zero variance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Mor For the Month Ended September 30 Actual Flexible Results Budget 41 61 Planning Budget Courses Students 1 T L Revenue $ 52,540 Expenses: Instructor wages 11,120 Classroom supplies 17,490 Utilities 1,830 Campus rent 4,900 Insurance 2.240 Administrative 3,346 expenses Total expense 40,926 Net operating Income L$ 11,614

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