The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers i

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The Gourmand Cooking School Runs Short Cooking Courses At Its Small Campus Management Has Identified Two Cost Drivers I 1 (158.21 KiB) Viewed 24 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 62 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 Fixed Cost per Cost per Cost per Month Student Course $ 2,940 $ 280 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 1,210 $ 4,600 $ 2,300 $ 3,900 Courses Students Davenu For example, administrative expenses should be $3,900 per month plus $40 per course plus $7 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 52 students. The actual operating results for September were as follows: Actual $ 50,420 $ 11,040 17,210 $ 1,940 $4,600 $ $ 2,440 $ 3,920 $80 $ 40 $ 7 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.) Actual Results 4 52 50 120 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget Planning Budget