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 65 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					$	270
Utilities	$	1,210	$	55
Campus rent	$	5,000
Insurance	$	2,300
Administrative expenses	$	4,000	$	41	$	4

For example, administrative expenses should be $4,000 per month plus $41 per course plus $4 per student. The companys sales should average $880 per student.

The company planned to run four courses with a total of 65 students; however, it actually ran four courses with a total of only 59 students. The actual operating results for September appear below:

	Actual
Revenue	$	54,300
Instructor wages	$	11,080
Classroom supplies	$	17,400
Utilities	$	1,840
Campus rent	$	5,000
Insurance	$	2,440
Administrative expenses	$	3,850

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 Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget Courses 4 4 Students 59 Revenue $ 54,300 11,080 Expenses: Instructor wages Classroom supplies Utilities 17,400 1,840 Campus rent 5,000 Insurance 2,440 Administrative expenses 3,850 Total expense 41,610 Net operating income $ 12,690