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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 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost per cost per Month Course Student 52,960 $310 $1,200 $ 70 $4,800 $2,100 $3,600 $ 43 For example, administrative expenses should be $3,600 per month plus $43 per course plus $4 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 53 students. The actual operating results for September appear below: Actual Revenue $49,560 Instructor wages $11,120 Classroon supplies $ 18,760 Utilities $ 1,890 Campus rent $ 4,800 Insurance $ 2,240 Administrative expenses $ 3,442 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 (le, 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 4 4 4 Courses Students 53 53 53 $ 49,560 LU None LU F Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,120 18,760 1,890 4,800 2,240 3,442 42,252 7,308 ru None U None None None $

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