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 65 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

For example, administrative expenses should be $3,900 per month plus $41 per course plus $6 per student. The companys sales should average $900 per student.

The company planned to run four courses with a total of 65 students; however, it actually ran four courses with a total of only 59 students. The actual operating results for September appear below:

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.)

Fixed Cost per Cost per Cost per Month Student Course $ 2,960 Instructor wages Classroom supplies $260 Utilities $1,240 $5,100 $2,300 $ 65 Campus rent Insurance Administrative expenses $3,900 $ 41 6 Actual $ 55,600 $ 11,120 $16,750 $ 1,910 $ 5,100 $2,440 $3,880 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Planning Budget Flexible Actual Results Budget Courses 4 Students 59 $ 55,600 Revenue Expenses: Instructor wages 11,120 Classroom supplies 16,750 Utilities 1,910 Campus rent 5,100 Insurance 2,440 Administrative expenses 3,880 Total expense 41,200 $ 14,400 Net operating income