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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 64 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 Utilities Campus rent $ 1,248 $ 4,500 Course $2,988 $ 65 Student $ 280 Insurance $ 2,300 Administrative expenses $ 3,600 $ 45 $ 4 For example, administrative expenses should be $3,600 per month plus $45 per course plus $4 per student. The company's sales should average $900 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 were as follows: Actual Revenue Instructor wages Classroom supplies $ $ 54,700 11,200 $ 17,770 Utilities $ 1,918 Campus rent $ 4,500 Insurance $ 2,448 Administrative expenses $ 3,462 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 varlance). Input all amounts as positive values. Courses Students Answer is not complete. Gourmand Cooking School Flexible Budget Performance Report Actual Results For the Month Ended September 30 Revenue and Flexible Budget Activity Variances Planning Budget Spending Varlances 4 60 $ 54,700 Revenue Expenses: Instructor wages 11,200 Classroom supplies 17,770 Utilities 1,910 Campus rent 4,500 Insurance 2,440 Administrative expenses 3,462 Total expenses 41,282 Net operating income $ 13,418

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 64 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 Utilities Campus rent $ 1,248 $ 4,500 Course $2,988 $ 65 Student $ 280 Insurance $ 2,300 Administrative expenses $ 3,600 $ 45 $ 4 For example, administrative expenses should be $3,600 per month plus $45 per course plus $4 per student. The company's sales should average $900 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 were as follows: Actual Revenue Instructor wages Classroom supplies $ $ 54,700 11,200 $ 17,770 Utilities $ 1,918 Campus rent $ 4,500 Insurance $ 2,448 Administrative expenses $ 3,462 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 varlance). Input all amounts as positive values. Courses Students Answer is not complete. Gourmand Cooking School Flexible Budget Performance Report Actual Results For the Month Ended September 30 Revenue and Flexible Budget Activity Variances Planning Budget Spending Varlances 4 60 $ 54,700 Revenue Expenses: Instructor wages 11,200 Classroom supplies 17,770 Utilities 1,910 Campus rent 4,500 Insurance 2,440 Administrative expenses 3,462 Total expenses 41,282 Net operating income $ 13,418

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 64 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 Utilities Campus rent $ 1,248 $ 4,500 Course $2,988 $ 65 Student $ 280 Insurance $ 2,300 Administrative expenses $ 3,600 $ 45 $ 4 For example, administrative expenses should be $3,600 per month plus $45 per course plus $4 per student. The company's sales should average $900 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 were as follows: Actual Revenue Instructor wages Classroom supplies $ $ 54,700 11,200 $ 17,770 Utilities $ 1,918 Campus rent $ 4,500 Insurance $ 2,448 Administrative expenses $ 3,462 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 varlance). Input all amounts as positive values. Courses Students Answer is not complete. Gourmand Cooking School Flexible Budget Performance Report Actual Results For the Month Ended September 30 Revenue and Flexible Budget Activity Variances Planning Budget Spending Varlances 4 60 $ 54,700 Revenue Expenses: Instructor wages 11,200 Classroom supplies 17,770 Utilities 1,910 Campus rent 4,500 Insurance 2,440 Administrative expenses 3,462 Total expenses 41,282 Net operating income $ 13,418
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 64 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 Utilities Campus rent $ 1,248 $ 4,500 Course $2,988 $ 65 Student $ 280 Insurance $ 2,300 Administrative expenses $ 3,600 $ 45 $ 4 For example, administrative expenses should be $3,600 per month plus $45 per course plus $4 per student. The company's sales should average $900 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 were as follows: Actual Revenue Instructor wages Classroom supplies $ $ 54,700 11,200 $ 17,770 Utilities $ 1,918 Campus rent $ 4,500 Insurance $ 2,448 Administrative expenses $ 3,462 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 varlance). Input all amounts as positive values. Courses Students Answer is not complete. Gourmand Cooking School Flexible Budget Performance Report Actual Results For the Month Ended September 30 Revenue and Flexible Budget Activity Variances Planning Budget Spending Varlances 4 60 $ 54,700 Revenue Expenses: Instructor wages 11,200 Classroom supplies 17,770 Utilities 1,910 Campus rent 4,500 Insurance 2,440 Administrative expenses 3,462 Total expenses 41,282 Net operating income $ 13,418
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