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					$	280
Utilities	$	1,230	$	80
Campus rent	$	4,700
Insurance	$	2,100
Administrative expenses	$	3,800	$	45	$	6

For example, administrative expenses should be $3,800 per month plus $45 per course plus $6 per student. The companys sales should average $860 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 56 students. The actual operating results for September appear below:

	Actual
Revenue	$	50,420
Instructor wages	$	10,880
Classroom supplies	$	17,210
Utilities	$	1,960
Campus rent	$	4,700
Insurance	$	2,240
Administrative expenses	$	3,778

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.