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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 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 per Cost per Cost per Month Student $ 300 $1,220 $5,200 $2,200 $ 3,900 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance. Administrative expenses. Course $ 2,960 $ 85 $45 56 For example, administrative expenses should be $3,900 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September were as follows: Actual $ 50,420 $ 11,120 $ 18,450 $ 1,970 $ 5,200 $ 2,340 $ 3,878

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 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 per Cost per Cost per Month Student $ 300 $1,220 $5,200 $2,200 $ 3,900 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance. Administrative expenses. Course $ 2,960 $ 85 $45 56 For example, administrative expenses should be $3,900 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September were as follows: Actual $ 50,420 $ 11,120 $ 18,450 $ 1,970 $ 5,200 $ 2,340 $ 3,878

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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Spoed Book Print erences Exercise 9-6 (Algo) Working with More Than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6] 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 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 per Cost per Cost per Month Student $ 300 $ 1,220 $ 5,200 $ 2,200 $ 3,900 Revenue Instructor wages Classroon supplies Utilities Campus rent Insurance Administrative expenses. Course $ 2,960 $ 85 $ 45 $6 For example, administrative expenses should be $3,900 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September were as follows: Actual $ 50,420 $11,120 $ 18,450 $ 1,970 $5,200 $ 2,340 $ 3,878
Transcribed Image Text:Spoed Book Print erences Exercise 9-6 (Algo) Working with More Than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6] 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 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 per Cost per Cost per Month Student $ 300 $ 1,220 $ 5,200 $ 2,200 $ 3,900 Revenue Instructor wages Classroon supplies Utilities Campus rent Insurance Administrative expenses. Course $ 2,960 $ 85 $ 45 $6 For example, administrative expenses should be $3,900 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September were as follows: Actual $ 50,420 $11,120 $ 18,450 $ 1,970 $5,200 $ 2,340 $ 3,878
Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance. Administrative expenses Total expenses Net operating income Actual Results $ Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 $ 4 56 50,420 11,120 18,450 1,970 5,200 2,340 3,878 42,958 7,462 Flexible Budget डी Planning Budget
Transcribed Image Text:Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance. Administrative expenses Total expenses Net operating income Actual Results $ Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 $ 4 56 50,420 11,120 18,450 1,970 5,200 2,340 3,878 42,958 7,462 Flexible Budget डी Planning Budget
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