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			$	2,950
Classroom supplies					$	280
Utilities	$	1,220	$	65
Campus rent	$	5,000
Insurance	$	2,200
Administrative expenses	$	3,800	$	45	$	7

For example, administrative expenses should be $3,800 per month plus $45 per course plus $7 per student. The companys sales should average $900 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 were as follows:

	Actual
Revenue	$	54,700
Instructor wages	$	11,080
Classroom supplies	$	17,770
Utilities	$	1,890
Campus rent	$	5,000
Insurance	$	2,340
Administrative expenses	$	3,854

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 $ 54,700 Expenses: Instructor wages 11,080 Classroom supplies 17,770 Utilities 1,890 5,000 Campus rent Insurance 2,340 Administrative expenses 3,854 Total expense 41,934 12,766 Net operating income $