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:

	Fixed Cost per Month	Cost per Course	Cost per Student
Instructor wages		$ 2,940
Classroom supplies			$ 290
Utilities	$ 1,210	$ 55
Campus rent	$ 4,600
Insurance	$ 2,200
Administrative expenses	$ 3,700	$ 42	$ 5

For example, administrative expenses should be $3,700 per month plus $42 per course plus $5 per student. The companys sales should average $890 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 60 students. The actual operating results for September appear below:

	Actual
Revenue	$ 54,060
Instructor wages	$ 11,040
Classroom supplies	$ 18,410
Utilities	$ 1,840
Campus rent	$ 4,600
Insurance	$ 2,340
Administrative expenses	$ 3,614

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.

• Required 1
• Required 2
• Required 3

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
Net operating income

• Required 1
• Required 2
• Required 3

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
Net operating income

• Required 1
• Required 2
• Required 3

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	$54,060
Expenses:
Instructor wages	11,040
Classroom supplies	18,410
Utilities	1,840
Campus rent	4,600
Insurance	2,340
Administrative expenses	3,614
Total expense	41,844
Net operating income	$12,216