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			$	2,900
Classroom supplies					$	290
Utilities	$	1,230	$	70
Campus rent	$	5,000
Insurance	$	2,300
Administrative expenses	$	3,900	$	40	$	5

For example, administrative expenses should be $3,900 per month plus $40 per course plus $5 per student. The companys sales should average $900 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 58 students. The actual operating results for September appear below:

	Actual
Revenue	$	52,900
Instructor wages	$	10,880
Classroom supplies	$	17,830
Utilities	$	1,920
Campus rent	$	5,000
Insurance	$	2,440
Administrative expenses	$	3,796

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.

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 company's cost formulas appear below: Fixed Cost Cost per per Month Course $ 2,900 Cost per Student $ 299 $ 70 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 1,230 $5,000 $ 2,300 $3,900 $ 40 $ 5 For example, administrative expenses should be $3.900 per month plus $40 per course plus $5 per student. The company's sales should average $900 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 58 students. The actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 52,900 $ 10,880 $ 17,830 $ 1,920 $ 5,000 $ 2,440 $ 3,796 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 planning budget for September Gourmand Cooking School Planning Budget For the Month Ended September 30 Budgeted courses Budgeted students 58 Revenue $ 52,900 Expenses. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 10,880 17,830 1,920 500 2,440 3,796 37,366 15,534 $