**Gourmand Cooking School****Flexible Budget Performance Report***For the Month Ended September 30*| | Actual Results | Flexible Budget | Planning Budget ||--------------------------------|----------------|-----------------|-----------------|| **Courses** | 3 | | || **Students** | 42 | | || **Revenue** | $32,400 | | || **Expenses:** | | | || Instructor wages | $9,080 | | || Classroom supplies | $8,540 | | || Utilities | $1,530 | | || Campus rent | $4,200 | | || Insurance | $1,890 | | || Administrative expenses | $3,730 | | || **Total expense** | $29,030 | | || **Net operating income** | $3,370 | | |**Explanation:**This performance report showcases the financial status of Gourmand Cooking School for a specific month, comparing actual results with budget expectations. The report is divided into three main categories: Actual Results, Flexible Budget, and Planning Budget, though only the Actual Results contain data.- **Actual Results**: Show the real numbers achieved, which include 3 courses taught and 42 students enrolled, with total revenue of $32,400. The expenses are broken down by categories such as instructor wages ($9,080), classroom supplies ($8,540), and others, leading to a total expense of $29,030. The net operating income stands at $3,370.The Flexible Budget and Planning Budget columns are currently unfilled, indicating this was a preliminary or mid-cycle report. **Title: Cost Analysis of Short Cooking Courses at Gourmand Cooking School**The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers in its budgeting and performance reports—the number of courses and the total number of students. For instance, the school might conduct two courses in a month with a total of 50 students enrolled. The data concerning the company's cost formulas are detailed below.**Cost Analysis**| Category | Fixed Cost per Month | Cost per Course | Cost per Student ||---------------------------|----------------------|-----------------|------------------|| Instructor wages | $3,080 | | $260 || Classroom supplies | | $130 | || Utilities | $870 | $130 | || Campus rent | $4,200 | | || Insurance | $1,890 | | || Administrative expenses | $3,270 | $15 | $4 |For example, administrative expenses are calculated at $3,270 per month, in addition to $15 per course and $4 per student. The expected sales should average $800 per student.**Planned versus Actual Operations**The company planned to host three courses with a total of 45 students. However, the actual operations for September involved three courses with only 42 students. The actual operating results are as follows:| Category | Actual Cost ||---------------------------|-----------------------|| Revenue | $32,400 || Instructor wages | $9,080 || Classroom supplies | $1,540 || Utilities | $1,200 || Campus rent | $4,200 || Insurance | $1,890 || Administrative expenses | $3,790 |This financial overview provides insights into the operational costs associated with offering cooking courses, emphasizing the impact of variations in student enrollment and course frequency on overall expenses.

Fixed Cost per Cost per Cost per Month Course Student Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $3,080 $260 $ 870 $ 130 $ 4,200 $ 1,890 $ 3,270 $ 15 $ 4 For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company should average $800 per student. The company planned to run three courses with a total of 45 students; however, it actually ran three courses with a total of students. The actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 32,400 $ 9,080 $ 8,540 $ 1,530 $ 4,200 $ 1,890 $ 3,790

Fixed Cost per Cost per Cost per Month Course Student Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $3,080 $260 $ 870 $ 130 $ 4,200 $ 1,890 $ 3,270 $ 15 $ 4 For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company should average $800 per student. The company planned to run three courses with a total of 45 students; however, it actually ran three courses with a total of students. The actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 32,400 $ 9,080 $ 8,540 $ 1,530 $ 4,200 $ 1,890 $ 3,790

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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 64 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 $ 2,920 Classroom supplies $ 300 Utilities $ 1,250 $ 55 Campus rent $ 4,900 Insurance $ 2,200 Administrative expenses $ 3,700 $ 42 $ 6 For example, administrative expenses should be $3,700 per month plus $42 per course plus $6 per student. The company’s sales should average $850 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 62 students. The actual operating results for September…
Make-or-Buy Decision Wisconsin Arts of Milwaukee employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, and other publications for the production. The pages are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service is quoting a price of $20.00 per layout page. The budget for the Publication Department is as follows: Salaries $180,000 Benefits 52,000 Supplies 34,000 Office expenses 21,000 Office depreciation 60,300 Computer depreciation 40,200 Total $387,500 The department expects to lay out 33,500 pages. The computers used by the department have an estimated residual value of $26,800. The Publication Department office space would be used for future administrative needs if the department's function were purchased from the outside. a. Prepare a differential analysis report for the make-or-buy decision, considering the…
Sager
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 50 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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Courses Students Revenue For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company's sales should average $800 per student. Expenses: The company planned to run three courses with a total of 45 students; however, it actually ran three courses with a total of only 42 students. The actual operating results for September were as follows: Instructor…
Munabhai
Diversified Investor Group is opening an office in Portland, Oregon. Fixed monthly costs are office rent ($8,800), depreciation on office furniture ($2,000), utilities ($2,100), special telephone lines ($1,500), a connection with an online brokerage service ($2,700), and the salary of a financial planner ($10,900). Variable costs include payments to the financial planner (9% of revenue), advertising (11% of revenue), supplies and postage (4% of revenue), and usage fees for the telephone lines and computerized brokerage service (6% of revenue). Read the requirements. Requirement 2. Use the equation approach to compute the dollar revenues needed to earn a monthly target profit of $11,200. Begin by selecting the formula to compute the required sales in units to earn a target profit. = Target profit Rearrange the formula you determined above and compute the required number of trades to earn a monthly target profit of $11,200. Diversified must make trades to earn a monthly operating income…
Suppose you are the human resource manager for a cellular phone company with 700 employees. Top management has asked you to implement three additional fringe benefits that were negotiated with employee representatives and agreed upon by a majority of the employees. These include group term life insurance, a group legal services plan, and a wellness center. The life insurance is estimated to cost $390 per employee per quarter. The legal plan will cost $468 semiannually per employee. The company will contribute 40% to the life insurance premium and 75% to the cost of the legal services plan. The employees will pay the balance through payroll deductions from their biweekly paychecks. In addition, they will be charged 1 4 % of their gross earnings per paycheck for maintaining the wellness center. The company will pay the initial cost of $600,000 to build the center. This expense will be spread over 5 years. (a) What total amount should be deducted per paycheck for these new…
You run a software development business where customers require immediate technical support. You plan to target 1,092 users this month of which 12.22% will convert and become customers. Each customer will require about 48 minutes of phone support per month from the first month. You plan to recruit the support staff on an hourly basis for $27.7 per hour plus 21.3% in benefits. For every 30 minutes of phone support, each support staff will be entitled to another 15 minutes of administrative and email/messaging support time. How much is the monthly support expense for the customers targeted this month assuming no churn? Options: $5,380 $5,515 $5,649 $5,784 $5,918
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: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,930 Classroom supplies $ 270 Utilities $ 1,230 $ 65 Campus rent $ 5,200 Insurance…
The following data are available for ABC Repair Shop purchasing and materials management for 2016: Purchasing manager wages $ 150,000 Fringe benefits 50,000 Overhead 80,000 Budgeted Material purchases $400,000 The desired profit margin is $10 per labour hour. It is estimated that 4,000 labour hours will be worked in 2016. The company wants to make a 12% profit on material purchases. Calculate the material loading rate.
Akagera Finance Plc has two service departments, the Human Resources (HR) Department and the Computing Department. Akagera Finance Plc has two other departments that directly service customers, the Deposit Department and the Loan Department. The usage of the two service departments’ output for the year is as follows: User of Service Provider of Service HR Computing HR 0 10% Computing 10% 0 Deposit 55% 50% Loan 35% 40% The budgeted costs in the two service departments for the year are as follows: HR $ 529,000 Computing 758,500 Required: Use the reciprocal-services method to allocate the budgeted costs of the HR and Computing departments to the Deposit and Loan departments