I am having trouble with this chapter we moved on to the necktie chapter last week but I'm still having trouble with some of the problems this is one of them The Gourmand Cooking School runs short cooking courses at its campus. For budgeting and performance reports, management has identified two cost drivers: the number of courses and the number of students. For instance, the school might run two courses in a month, enrolling 61 students. The cost data is as follows:**Fixed Costs:**- **Instructor wages:** $2,950 per month- **Classroom supplies:** $1,120 - $50 per course - $20 per student- **Utilities:** $1,218 - $50 per course - $8 per student- **Campus rent:** $4,700- **Insurance:** $2,100- **Administrative expenses:** $4,000 - $43 per course - $6 per studentFor example, administrative expenses should be $4,000 per month plus $43 per course and $6 per student. The company’s sales should average $860 per student.The company planned to run four courses with a total enrollment of 61 students. However, in September, they ran four courses with only 53 students. The actual operating results for September were:**Actual Results:**- **Revenue:** $49,560- **Instructor wages:** $12,380- **Classroom supplies:** $6,328- **Utilities:** $2,984- **Campus rent:** $4,700- **Insurance:** $2,100- **Administrative expenses:** $3,964**Required:**Prepare a flexible budget performance report to show revenue and spending variances, and activity variances for September. Indicate the effect as "F" for favorable, "U" for unfavorable, and "None" for no effect (zero variance). Input all amounts as positive values.**Flexible Budget Performance Report:**- **Gourmand Cooking School**- **For the Month Ended September 30**| | **Actual Results** | **Flexible Budget** ||---------------------|--------------------|---------------------|| **Courses** | 4 | || **Students** | 53 | || **Planning Budget** | | |You are required to fill out the flexible budget and compare it to actual results for variance analysis. ### Gourmand Cooking School: Flexible Budget Performance ReportFor the Month Ended September 30#### IntroductionThis report is designed to compare actual performance against both a flexible budget and a planning budget for the month of September. It illustrates variances in revenues and expenses to aid in financial analysis and decision-making.#### Performance Overview- **Number of Courses:** 4- **Number of Students:** 53#### Financial Results- **Revenue:** - Actual Results: $49,560#### Expenses1. **Instructor Wages**: $11,0802. **Classroom Supplies**: $16,3203. **Utilities**: $1,8204. **Campus Rent**: $4,7005. **Insurance**: $2,4406. **Administrative Expenses**: $3,964- **Total Expenses**: $40,324#### Net Operating Income- **Actual Results**: $9,236#### Task RequirementPrepare a flexible budget performance report showing both revenue and spending variances, along with activity variances for September. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect. Enter all amounts as positive values.#### NoteThe report structure includes columns for:- Actual Results- Flexible Budget- Planning Budget- Variance AnalysisThe report aims to help identify areas of overperformance or underperformance, contributing to strategic financial management and planning.

Activity Variance: The difference between planned level and actual level of activities is called…

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 Fixed Cost Cost per Cost per Student per Month Course Instructor wages Classroom supplies $ 2,950 $ 270 Utilities $ 1,210 $ 4,700 $ 2, 300 $ 4,000 5e Campus rent Insurance Administrative expenses 43 $ 6 For example, administrative expenses should be $4,000 per month plus $43 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 61 students; however, It actually ran four courses with a total of only 53 students. The actual operating results for September were as follows: Actual Revenue $ 49,560 $ 11, e8e $ 16, 320 $ 1,820 $ 4,700 $ 2,440 $ 3,964 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Requlred: Prepare a flexible budget performance report that shows both revenue and spending varlances and activity varlances for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance). Input all amounts as positive values.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q