The Gourmand Cooking School runs short cooking courses at its small campus. Mana

Question

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that 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 64 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

   

  

For example, administrative expenses should be $3,600 per month plus $42 per course plus $3 per student. The company’s sales should average $870 per student.

  

  

  

The Gourmand Cooking School expects to run four courses with a total of 64 students in September. Complete the company’s planning budget for this level of activity.

     

     

The school actually ran four courses with a total of 56 students in September. Complete the company’s flexible budget for this level of activity.

Complete the 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.)

please show work

Fixed Cost per Month Cost per Course Cost per
Student   Instructor wages $ 2,910   Classroom supplies    $ 310      Utilities $ 1,250    $ 55   Campus rent $ 4,900      Insurance $ 2,100          Administrative expenses $ 3,600    $ 42 $ 3   

Explanation / Answer

Gourmand cooking school Planning Budget for the month ended September 30 Revenue    55,680.00 Expenses: Instructuor wages    11,640.00 Classroom supplies    19,840.00 Utilties      1,470.00 Campus rent      4,900.00 Insurance      2,100.00 Administrative expenses      3,960.00 total expenses    43,910.00 net operating income    11,770.00 Flexible budger Revenue    48,720.00 Expenses instructor wages    11,640.00 classroom supplies    17,360.00 Utilties      1,470.00 Campus rent      4,900.00 insurance      2,100.00 Administrative expenses      3,936.00 total expenses    41,406.00 Net operating income      7,314.00

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