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:

	Fixed Cost per Month		Cost per Course		Cost per Student
Instructor wages			$	2,940
Classroom supplies					$	280
Utilities	$	1,210	$	90
Campus rent	$	4,900
Insurance	$	2,100
Administrative expenses	$	3,700	$	43	$	4

For example, administrative expenses should be $3,700 per month plus $43 per course plus $4 per student. The companys sales should average $870 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 55 students. The actual operating results for September were as follows:

	Actual
Revenue	$	53,650
Instructor wages	$	11,040
Classroom supplies	$	18,050
Utilities	$	1,980
Campus rent	$	4,900
Insurance	$	2,240
Administrative expenses	$	3,558

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.)

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 Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget Des 4 Courses Students 55 $ 53,650 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,040 18,050 1.980 4,900 2,240 3,558 41,768 11.882 $