- The Gourmand Cooking School Runs Short Cooking Courses At Its Small Campus Management Has Identified Two Cost Drivers I 1 (37.77 KiB) Viewed 28 times
- The Gourmand Cooking School Runs Short Cooking Courses At Its Small Campus Management Has Identified Two Cost Drivers I 2 (41.05 KiB) Viewed 28 times
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 60 students enrolled in those two courses. Data concerning the
company's cost formulas appear below: Instructor wages classroom supplies. Utilities Campus rent. Insurance Administrative expenses Pixed Cost per Cost per cost per Month Student Revenue Instructor vagen classroom supplies Utilities $ 1,210 $4,600 Campus rent Insurance Administrative expenses $2,100 $3,800 Course $ 2,940 $ 80 $43 For example, administrative expenses should be $3,800 per month plus $43 per course plus $5 per student. The
company's sales should average $890 per student. The
company planned to run four courses with a total of 60 students; however, it actually ran four courses with a total of only 50 students. The actual operating results for September were as follows: $ 300 Actual $50,500 $ 11,040 $ 17,850 $ 1,940 $4,600 $ 2,240 $ 3,698 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.)
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.) Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Actual Results Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 4 50 $ 50,500 $ 11,040 17,850 1,940 4,600 2,240 3,698 41,368 9,132 Revenue and Spending Variances F F U U None U Answer is not complete. F U F 3 00000000 O Flexible Budget Activity Variances U None F None None None F F U O 00000000 Planning Budget