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 61 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		$ 2,900
Classroom supplies			$ 300
Utilities	$ 1,220	$ 65
Campus rent	$ 5,000
Insurance	$ 2,200
Administrative expenses	$ 3,800	$ 46	$ 6

For example, administrative expenses should be $3,800 per month plus $46 per course plus $6 per student. The companys sales should average $880 per student.

The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 53 students. The actual operating results for September appear below:

	Actual
Revenue	$ 50,780
Instructor wages	$ 10,880
Classroom supplies	$ 18,150
Utilities	$ 1,890
Campus rent	$ 5,000
Insurance	$ 2,340
Administrative expenses	$ 3,776

Required:

1. Prepare the companys planning budget for September.

2. Prepare the companys flexible budget for September.

3. Calculate the revenue and spending variances for September.