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. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost per cost per Month Course Student $ 2,900 $ 1,220 $4,500 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 2,100 $ 3,700 $75 $ 42 For example, administrative expenses should be $3,700 per month plus $42 per course plus $4 per student. The company's sales should average $880 per student. $ 300 Actual $ 50,780 $ 10,000 $ 18,150 $ 1,930 $4,500 $ 2,240 $ 3,538 The company planned to run four courses with a total of 61 students, however, it actually ran four courses with a total of only 59 students. The actual operating results for September were as follows: 54 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 (i.e., zero variance). Input all amounts as positive values.)

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Chapter1: Financial Statements And Business Decisions
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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.
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Revenue
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Courses
Students
Revenue
Expenses
Instructor wages
Classroom supplies
$42
For example, administrative expenses should be $3,700 per month plus $42 per course plus $4 per student. The company's sales
should average $880 per student.
Utilities
Campus rent
Insurance
Fixed
Cost per Cost per
Month
Administrative expenses
Total expense
Net operating income
$ 1,220
$4,500
$2,100
$ 3,700
The company planned to run four courses with a total of 61 students, however, it actually ran four courses with a total of only 59
students. The actual operating results for September were as follows:
$
$
Actual
$ 50,780
$ 10,880
$ 18,150
$1,930
$4,500
$2,240
$ 3,538
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 (i.e., zero
variance). Input all amounts as positive values.)
Actual Results
Course
$ 2,900
$75
4
59
50,780
cost per
Student
10,880
18.150
$ 300
1,930
4,500
2,240
3,538
41,238
9,542
Gourmand Cooking School
Flexible Budget Performance Report
For the Month Ended September 30
$4
Flexible
Budget
Planning
Budget
Transcribed Image Text:aces 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. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Courses Students Revenue Expenses Instructor wages Classroom supplies $42 For example, administrative expenses should be $3,700 per month plus $42 per course plus $4 per student. The company's sales should average $880 per student. Utilities Campus rent Insurance Fixed Cost per Cost per Month Administrative expenses Total expense Net operating income $ 1,220 $4,500 $2,100 $ 3,700 The company planned to run four courses with a total of 61 students, however, it actually ran four courses with a total of only 59 students. The actual operating results for September were as follows: $ $ Actual $ 50,780 $ 10,880 $ 18,150 $1,930 $4,500 $2,240 $ 3,538 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 (i.e., zero variance). Input all amounts as positive values.) Actual Results Course $ 2,900 $75 4 59 50,780 cost per Student 10,880 18.150 $ 300 1,930 4,500 2,240 3,538 41,238 9,542 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 $4 Flexible Budget Planning Budget
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