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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

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 63 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 $ 2,920
Classroom supplies $ 290
Utilities $ 1,220 $ 65
Campus rent $ 5,000
Insurance $ 2,200
Administrative expenses $ 3,800 $ 43 $ 5

For example, administrative expenses should be $3,800 per month plus $43 per course plus $5 per student. The companys sales should average $880 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 55 students. The actual operating results for September were as follows:

Actual
Revenue $ 52,540
Instructor wages $ 10,960
Classroom supplies $ 18,120
Utilities $ 1,890
Campus rent $ 5,000
Insurance $ 2,340
Administrative expenses $ 3,713

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September.

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