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 61 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 $ 2,910 Classroom supplies $ 280 Utilities $ 1,240 $ 90 Campus rent $ 5,000 Insurance $ 2,100 Administrative expenses $ 3,800 $ 44 $ 3 For example, administrative expenses should be $3,800 per month plus $44 per course plus $3 per student. The companys sales should average $900 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 53 students. The actual operating results for September appear below: Actual Revenue $ 52,000 Instructor wages $ 10,920 Classroom supplies $ 16,930 Utilities $ 2,010 Campus rent $ 5,000 Insurance $ 2,240 Administrative expenses $ 3,585 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.