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 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per per Month Course Student Instructor wages $ 2,970 Classroom supplies $ 270 Utilities $ 1,210 $ 75 Campus rent $ 4,800 Insurance $ 2,400 Administrative expenses $ 3,600 $ 41 $ 5 For example, administrative expenses should be $3,600 per month plus $41 per course plus $5 per student. The company's sales should average $860 per student The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 51 students. The actual operating results for September appear below: Actual Revenue $ 49,560 Instructor wages $ 11,160 Classroom supplies $ 16,320 Utilities $ 1,920 Campus rent $ 4,800 Insurance $ 2,540 Administrative expenses $ 3,495 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 0 $ 0 Required 1 Peamired2 Complete this question by entering your answers in the tabs below. 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 Actual courses Budgeted courses Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the revenue and spending varlances for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Gourmand Cooking School Revenue and Spending Variances For the Month Ended September 30 Actual Revenue and Flexible Results Spending Variances Budget Courses Students 51 4 $ 49,560 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,160 16,320 1,920 4,800 2,540 3,495 40,235 9,325 S
