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The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes - the
The Gourmand Cooking School runs short cooking courses at its small campus.
Management has identified two cost drivers it uses for budgeting purposesthe
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 students enrolled in
those two courses. Data concerning the company's cost formulas appear below:
For example, administrative expenses should be $ per month plus $ per
course plus $ per student. The company's sales should average $ per
student.
The company planned to run four courses with a total of students; however, it
actually ran four courses with a total of only students. The actual operating
results for September were as follows:
Required:
Prepare a flexible budget performance report for September.
Note: 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.
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