The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that 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 65 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			$	2,960
Classroom supplies					$	280
Utilities	$	1,240	$	80
Campus rent	$	4,800
Insurance	$	2,300
Administrative expenses	$	4,000	$	46	$	4

For example, administrative expenses should be $4,000 per month plus $46 per course plus $4 per student. The companys sales should average $870 per student.

The actual operating results for September appear below:

		Actual
Revenue	$	53,650
Instructor wages	$	11,120
Classroom supplies	$	18,050
Utilities	$	1,970
Campus rent	$	4,800
Insurance	$	2,440
Administrative expenses	$	3,870

Required:

1.

The Gourmand Cooking School expects to run four courses with a total of 65 students in September. Complete the companys planning budget for this level of activity.

2.	The school actually ran four courses with a total of 57 students in September. Complete the companys flexible budget for this level of activity.

3. Complete the 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 (i.e., zero variance). Input a amounts as positive values.) Flexible Budget Performance Report For the Month Ended September 30 Revenue and Spending Variances Activity Variances Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income