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 reports$$the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of $61$ students enrolled in those two courses. Data concerning the company$$s cost formulas appear below:

Fixed Cost per Month Cost per Course Cost per Student

Instructor wages $ $2,960$

Classroom supplies $ $270$

Utilities $ $1,210$ $ $75$

Campus rent $ $4,500$

Insurance $ $2,300$

Administrative expenses $ $3,800$ $ $45$ $ $7$

For example, administrative expenses should be $$3,800$ per month plus $$45$ per course plus $$7$ per student. The company$$s sales should average $$850$ 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 $59$ students. The actual operating results for September were as follows:

Actual

Revenue $ $48,950$

Instructor wages $ $11,120$

Classroom supplies $ $16,320$

Utilities $ $1,920$

Campus rent $ $4,500$

Insurance $ $2,440$

Administrative expenses $ $3,833$

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September.