The Gourmand Cooking School runs short cooking courses at its small campus. Management has budgeting purposes-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 Fixed Cost per Cost per Cost per Month Course Student $ 2,940 $ 290 Utilities $ 1,220 $ 70 Campus rent $ 4,600 Insurance $ 2,100 Administrative expenses $ 3,700 $ 44 $ 4 For example, administrative expenses should be $3,700 per month plus $44 per course plus $4 per student. The company's sales should average $850 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September were as follows: Revenue Instructor wages Classroom supplies Actual $ 50,650 $ 11,040 $ 18,120 Utilities $ 1,910 Campus rent $ 4,600 Insurance $ 2,240 Administrative expenses $ 3,554 Required: Prepare a flexible budget performance report for September. Note: 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 Gourmand Cooking School runs short cooking courses at its small campus. Management has budgeting purposes-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 Fixed Cost per Cost per Cost per Month Course Student $ 2,940 $ 290 Utilities $ 1,220 $ 70 Campus rent $ 4,600 Insurance $ 2,100 Administrative expenses $ 3,700 $ 44 $ 4 For example, administrative expenses should be $3,700 per month plus $44 per course plus $4 per student. The company's sales should average $850 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September were as follows: Revenue Instructor wages Classroom supplies Actual $ 50,650 $ 11,040 $ 18,120 Utilities $ 1,910 Campus rent $ 4,600 Insurance $ 2,240 Administrative expenses $ 3,554 Required: Prepare a flexible budget performance report for September. Note: 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gadubhai
Transcribed Image Text:The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for
budgeting purposes-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:
Fixed
Cost per Cost per Cost per
Month
Instructor wages
Classroom supplies
Course
$ 2,940
Student
$ 290
Utilities
$ 1,220
$ 70
Campus rent
$ 4,600
Insurance
$ 2,100
Administrative expenses
$ 3,700
$ 44
$ 4
For example, administrative expenses should be $3,700 per month plus $44 per course plus $4 per student. The company's sales
should average $850 per student.
The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 57
students. The actual operating results for September were as follows:
Actual
$ 50,650
Revenue
Instructor wages
Classroom supplies
Utilities
Campus rent
$ 11,040
$ 18,120
$ 1,910
$ 4,600
Insurance
$ 2,240
Administrative expenses
$ 3,554
Required:
Prepare a flexible budget performance report for September.
Note: 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.
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