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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

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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 reports-the 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 company's cost formulas appear below Fixed Cost per Cost per cost per Month Course Student Instructor wages $ 2,920 Classroon supplies $ 270 Utilities 51,220 $85 Campus rent $4,600 Insurance $ 2,100 Administrative expenses $3,600 5.35 55 For example, administrative expenses should be $3,600 per month plus $43 per course plus $5 per student. The company's 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 61 students. The actual operating results for September were as follows The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 61 students. The actual operating results for September were as follows Actual Revenue $ 51,910 Instructor wages $ 11,160 Classroon supplies $ 16,860 Utilities $ 1,970 Campus rent $ 4,600 Insurance $2,240 Administrative expenses $ 3,513 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 (ie, zero variance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Pedomance Raport For the Month Ended September 30 Actual Results Flexible Budget Planning Budget . 4 61 51,910 $ Courses Students Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,160 16,860 1,970 4,600 2.240 3,513 40,343 11,567 5

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