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 62 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			$ 300
Utilities	$ 1,200	$ 75
Campus rent	$ 4,700
Insurance	$ 2,100
Administrative expenses	$ 3,800	$ 40	$ 4

For example, administrative expenses should be $3,800 per month plus $40 per course plus $4 per student. The companys sales should average $870 per student.

The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September appear below:

	Actual
Revenue	$ 51,040
Instructor wages	$ 11,040
Classroom supplies	$ 18,450
Utilities	$ 1,910
Campus rent	$ 4,700
Insurance	$ 2,240
Administrative expenses	$ 3,634

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.

Prepare the companys planning budget for September.

Gourmand Cooking School
Planning Budget
For the Month Ended September 30
Revenue
Expenses:
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Total expense	0
Net operating income	$0

Prepare the companys flexible budget for September.

Gourmand Cooking School
Flexible Budget
For the Month Ended September 30
Revenue
Expenses:
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Total expense	0
Net operating income	$0

Calculate the revenue and spending 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
Revenue and Spending Variances
For the Month Ended September 30
	Actual Results	Revenue and Spending Variances		Flexible Budget
Courses	4
Students	60
Revenue	$51,040
Expenses:
Instructor wages	11,040
Classroom supplies	18,450
Utilities	1,910
Campus rent	4,700
Insurance	2,240
Administrative expenses	3,634
Total expense	41,974
Net operating income	$9,066