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			$	2,940
Classroom supplies					$	310
Utilities	$	1,200	$	80
Campus rent	$	4,600
Insurance	$	2,200
Administrative expenses	$	3,500	$	44	$	3

For example, administrative expenses should be $3,500 per month plus $44 per course plus $3 per student. The companys sales should average $880 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 62 students. The actual operating results for September appear below:

	Actual
Revenue	$	53,420
Instructor wages	$	11,040
Classroom supplies	$	19,690
Utilities	$	1,930
Campus rent	$	4,600
Insurance	$	2,340
Administrative expenses	$	3,294

Required:

1. Prepare the companys planning budget for September.

2. Prepare the companys flexible budget for September.

3. Calculate the revenue and spending variances for September.

Gourmand Cooking School Revenue and Spending Variances For the Month Ended September 30 Actual Revenue and Spending Results Variances Flexible Budget Courses Students 62 $ 53,420 Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,040 19,690 1,930 4,600 2,340 3,294 42,894 10,526 $