The company planned to run four courses with a total of 63 students; however, itactually ran four courses with a total of only 53 students. The actual operating resultsfor September were as follows:RevenueInstructor wagesClassroom suppliesUtilitiesCampus rentInsuranceAdministrative expensesActual$53,170$11,000$17,490$1,890$4,900$2,440$3,651Prepare a flexible budget performance report for September. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positive values. 2.The Gourmand Cooking School runs short cooking courses at its small campus.Management has identified two cost drivers it uses for budgeting purposes-thenumber of courses and the total number of students. For example, the school mightrun two courses in a month and have a total of 63 students enrolled in those twocourses. Data concerning the company's cost formulas appear below:Instructor wagesClassroom suppliesUtilitiesCampus rentInsuranceAdministrative expensesFixed Cost per Month Cost per Course Cost per Student$2,930$280$60$1,240$4,900$2,300$3,600$46$7For example, administrative expenses should be $3,600 per month plus $46 per courseplus $7 per student. The company's sales should average $890 per student.The company planned to run four courses with a total of 63 students; however, itactually ran four courses with a total of only 53 students. The actual operating resultsfor September were as follows:15+D

The flexible budget is prepared to compare the actual and planned data for production. The revenue…

The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 53 students. The actual operating results for September were as follows: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $53,170 $11,000 $17,490 $1,890 $4,900 $2,440 $3,651 Prepare a flexible budget performance report 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.

The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 53 students. The actual operating results for September were as follows: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $53,170 $11,000 $17,490 $1,890 $4,900 $2,440 $3,651 Prepare a flexible budget performance report 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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 57P: Identifying Fixed, Variable, Mixed, and Step Costs Consider each of the following independent...

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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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month $ 1,240 $5,000 $ 2,200 $4,000 Required 1 Required 2 Cost per Course $ 2,940 $75 For example, administrative expenses should be $4,000 per month plus $45 per course plus $4 per student. The company's sales should average $880 per student. Actual $ 51,660 $ 11,040 $ 18,450 $1,950 $5,000 $ 2,340 $ 3,854 $45 The company planned to run four courses with a total of 62 students; however,…
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: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages. Classroom supplies Utilities Campus rent Insurance Administrative expenses For example, administrative expenses should be $4,000 per month plus $45 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 64 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September appear below: Courses Students Revenue Expenses: Instructor…
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 61 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 Cost per Fixed Cost per Month Cost per Course Student 2,940 $ 290 1,210 $ 50 4,700 2,200 3,700 $ 46 $ For example, administrative expenses should be $3,700 per month plus 546 per course plus $4 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below. Revenue Actual 50,780 Instructor wages $ 11,040…
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 63 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 Expenses: Fixed Cost per Cost per Month $ 46 For example, administrative expenses should be $3.700 per month plus $46 per course plus $3 per student. The company's sales should average $900 per student. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income $ 1,238 $ 5,000 $ 2,200 $ 3,700 The company planned…
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 63 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 Fixed Cost per Month For example, administrative expenses should be $3,600 per month plus $41 per course plus 54 per student. The company's sales should average $890 per student. The actual operating results for September appear below: Cost per Cost per Course Student $2.930 $290 $1,200 $4,600 $2,000 $3,800 $ 41 $ 4 Revenue Expenses $ 90 Actual $53.170 $ 11,000 $18,120 $ 1.970 $ 4,600 Required: 1.…
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 63 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 Month Revenue Instructor wages Classroom supplies Utilities $ 1,210 $ 4,800 $ 2,400 $ 3,500 Campus rent Insurance Administrative expenses Cost per Course $ 2,930 $75 $ 45 For example, administrative expenses should be $3,500 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. Cost per Student $300 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 59 students.…
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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Courses Students Revenue Expenses: For example, administrative expenses should be $4,000 per month plus $43 per course plus $6 per student. The company's sales should average $880 per student. Instructor wages Classroom supplies Utilities Campus rent Insurance Fixed Cost per Cost per Cost per Month Student Course $ 2,940 $65 The company planned to run four courses with a total of 62 students; however,…
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 63 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 $ 2,910 $ 1,240 $ 4,500 $ 2,100 $ 3,500 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 80 Actual $ 53,170 $ 10,920 $ 17,490 $ 41 For example, administrative expenses should be $3,500 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student. $ 1,970 $ 4,500 $ 2,240 $ 3,405 $ 280 The company planned to run four courses with a total of 63 students;…
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…
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 Fixed Cost per Month $1,210 $4,600 $ 2,200 $4,000 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Cost per Cost per Course Student $ 2,980 $75 $44 $ 300 For example, administrative expenses should be $4,000 per month plus $44 per course plus $6 per student. The company's sales should average $900 per student. Actual $ 51,100 $11,200 $ 17,850 $ 1,920 $4,600 $ 2,340 $ 3,962 $6 The company planned to run four courses with a total of 60 students;…
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 63 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 Month $ 1,210 $5,000 $ 2,300 $ 3,900 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Cost per Course $ 2,930 $ 55 Cost per Student $ 41 $3 For example, administrative expenses should be $3,900 per month plus $41 per course plus $3 per student. The company's sales should average $870 per student. $ 270 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55…
Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Planning Budget Flexible Actual Results Budget Courses 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 3,790 Total expense 29,030 Net operating income 3,370 3. %24 %24