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:
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 64 stdents enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost per Month cost per Course $ 2.920 Cost per Student $ 280 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 60 $ 1,210 $ 5,000 $ 2,000 $ 3.900 $.46 $6 For example, administrative expenses should be $3,900 per month plus $46 per course plus $6 per student. The company's sales should average $900 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 58 students. The actual operating results for September appear below: Revence Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 54,700 $ 10,960 $ 17,770 $ 1,860 $5,000 $ 2,140 $ 3,894 Required: 1. Prepare the company's planning budget for September 2. Prepare the company's flexible budget for September 3. Calculate the revenue and spending variances for September Complete this question by entering your answers in the tabs below. Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September Complete this question by entering your answers in the tabs b Required 1 Required 2 Required 3 Prepare the company's 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 Net operating income Required 1 RO Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September 3. Calculate the revenue and spending variances for September. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the company's 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 Net operating income
