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 60 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					$	270
Utilities	$	1,240	$	80
Campus rent	$	4,700
Insurance	$	2,000
Administrative expenses	$	3,600	$	44	$	4

For example, administrative expenses should be $3,600 per month plus $44 per course plus $4 per student. The companys sales should average $860 per student.

The company planned to run four courses with a total of 60 students; however, it actually ran four courses with a total of only 58 students. The actual operating results for September appear below:

	Actual
Revenue	$	48,700
Instructor wages	$	11,120
Classroom supplies	$	16,050
Utilities	$	1,970
Campus rent	$	4,700
Insurance	$	2,140
Administrative expenses	$	3,442

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 (i.e., zero variance). Input all amounts as positive values.)

Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Planning Budget 4 Courses Students 58 $ 48,700 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,120 16,050 1,970 4,700 2,140 3,442 39,422 9,278 $