The Toque Cooking Academy runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reportsthe number of courses and the total number of students. For example, the school might run four courses in a month and have a total of 61 students enrolled in those four courses. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month		Cost per Course	Cost per Student
Instructor wages			$ 2,980
Classroom supplies					$ 280
Utilities	$	1,220	$ 55
Campus rent	$	5,100
Insurance	$	2,000
Administrative expenses	$	4,000	$ 45		$ 5

For example, administrative expenses should be $4,000 per month plus $45 per course plus $5 per student. The companys sales should average $890 per student.

The actual operating results for October appear below:

	Actual
Revenue	$	51,390
Instructor wages	$	11,200
Classroom supplies	$	16,930
Utilities	$	1,850
Campus rent	$	5,100
Insurance	$	2,140
Administrative expenses	$	3,911

Required:
1.	The Toque Cooking Academy expects to run four courses with a total of 61 students in October. Prepare the companys planning budget for this level of activity. (Input all amounts as positive values.)

Toque Cooking Academy Planning Budget For the Month Ended October 31
Revenue	$
Expenses:
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Total expense
Net operating income	$

2.	The school actually ran four courses with a total of 59 students in October. Prepare the companys flexible budget for this level of activity. (Input all amounts as positive values.)

Toque Cooking Academy Flexible Budget For the Month Ended October 31
Revenue	$
Expenses:
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Total expense
Net operating income	$

3.	Calculate the spending variances for all expense items. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Toque Cooking Academy Revenue and Spending Variances. For the Month Ended October 31
	Revenue and Spending Variances
Revenue	$	(Click to select)UFNone
Expenses:
Instructor wages	$	(Click to select)UFNone
Classroom supplies		(Click to select)UNoneF
Utilities		(Click to select)FUNone
Campus rent		(Click to select)FUNone
Insurance		(Click to select)FUNone
Administrative expenses		(Click to select)FUNone
Total expense		(Click to select)FUNone
Net operating income	$	(Click to select)UFNone

References

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