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 63 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		$ 2,920
Classroom supplies			$ 270
Utilities	$ 1,230	$ 75
Campus rent	$ 4,900
Insurance	$ 2,100
Administrative expenses	$ 3,700	$ 42	$ 4

For example, administrative expenses should be $3,700 per month plus $42 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 63 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September were as follows:

	Actual
Revenue	$ 51,910
Instructor wages	$ 10,960
Classroom supplies	$ 16,860
Utilities	$ 1,940
Campus rent	$ 4,900
Insurance	$ 2,240
Administrative expenses	$ 3,546

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	not attempted		Flexible Budget	not attempted		Planning Budget
Courses	4			not attempted			not attempted
Students	57			not attempted			not attempted
Revenue	$51,910	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Expenses:
Instructor wages	10,960	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Classroom supplies	16,860	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Utilities	1,940	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Campus rent	4,900	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Insurance	2,240	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Administrative expenses	3,546	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Total expense	40,446	not attempted	not attempted	not attempted	not attempted	not attempted	not attempted
Net operating income	$11,464	not attempted	not attempted	not attempted	not attempted	not attempted