. The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses inits budgeting and performance reports-the number of courses and the total number of students. For example, the school might runtwo courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company's cost formulasappear belowInstructor wagesClassroom suppliesutilitiesCampus rentInsuranceAdministrative expensesFixed Cost Cost perper MonthRevenueInstructor wagesClassroom suppliesUtilitiesCampus rentInsuranceAdministrative expenses$1,240 5 75$5,000$2,200$3,600 $ 44CoursesCourse$ 2,950For example, administrative expenses should be $3,600 per month plus $44 per course plus $6 per student. The company's salesshould average $890 per studentThe company planned to run four courses with a total of 62 students, however, it actually ran four courses with a total of only 58students. The actual operating results for September appear belowActual$ 52,200$11,080$15,970$ 1,950$5,000$ 2,340$ 3,574Cost perstudent$260$6Required:Prepare a 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 (l.e., zerovariance). Input all amounts as positive values.)Actual ResultsGourmand Cooking SchoolFlexible Budget Performance ReportFor the Month Ended September 30FlexibleBudgetPlanningBudget The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses inits budgeting and performance reports-the number of courses and the total number of students. For example, the school might runtwo courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company's cost formulasappear belowInstructor wagesClassroom suppliesutilitiesCampus rentInsuranceAdministrative expensesFixed Cost Cost perper MonthRevenueInstructor wagesClassroom suppliesUtilitiesCampus rentInsuranceAdministrative expenses$1,240 5 75$5,000$2,200$3,600 $ 44CoursesCourse$ 2,950For example, administrative expenses should be $3,600 per month plus $44 per course plus $6 per student. The company's salesshould average $890 per studentThe company planned to run four courses with a total of 62 students, however, it actually ran four courses with a total of only 58students. The actual operating results for September appear belowActual$ 52,200$11,080$15,970$ 1,950$5,000$ 2,340$ 3,574Cost perstudent$260$6Required:Prepare a 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 (l.e., zerovariance). Input all amounts as positive values.)Actual ResultsGourmand Cooking SchoolFlexible Budget Performance ReportFor the Month Ended September 30FlexibleBudgetPlanningBudget

The income and variable costs in the planning budget must be changed to show what is anticipated to…

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 Fixed Cost Cost per per Month Course $2,950 $1,240 $5,000 $2,200 $3,600 5 44 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses 3 75 For example, administrative expenses should be $3,600 per month plus $44 per course plus $6 per student. The company's sales should average $890 per student. Actual $ 52,200 $11,080 $15,970 $ 1,950 $5,000 $ 2,340 $ 3,574 Cost per Student $200 The company planned to run four courses with a total of 62 students, however, it actually ran four courses with a total of only 58 students. The actual operating results for September appear below $6. Actual Results Required: Prepare a 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 (.e., zero variance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 4 Flexible Budget Planning Budget

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q