Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 $ 2,960 Revenue Instructor wages Classroom supplies Utilities $ 1,250 $ 5,000 $ 2,200 $ 3,600 Campus rent Insurance Administrative expenses $90 For example, administrative expenses should be $3,600 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. Actual $ 49,560 $ 11, 120 $ 16,930 $ 45 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: $ 2,020 $ 5,000 $ 2,340 $ 3,572 $ 280 $ 6

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 $ 2,960 Revenue Instructor wages Classroom supplies Utilities $ 1,250 $ 5,000 $ 2,200 $ 3,600 Campus rent Insurance Administrative expenses $90 For example, administrative expenses should be $3,600 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. Actual $ 49,560 $ 11, 120 $ 16,930 $ 45 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: $ 2,020 $ 5,000 $ 2,340 $ 3,572 $ 280 $ 6

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
icon
Concept explainers
Question

H

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 $ 2,960 $ 90 $ 1,250 $ 5,000 $ 2,200 $ 3,600 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 45 $ 280 For example, administrative expenses should be $3,600 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. Actual $ 49,560 $ 11, 120 $ 16,930 $ 2,020 $ 5,000 $ 2,340 $ 3,572 $ 6 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:
Transcribed Image Text: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 $ 2,960 $ 90 $ 1,250 $ 5,000 $ 2,200 $ 3,600 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 45 $ 280 For example, administrative expenses should be $3,600 per month plus $45 per course plus $6 per student. The company's sales should average $860 per student. Actual $ 49,560 $ 11, 120 $ 16,930 $ 2,020 $ 5,000 $ 2,340 $ 3,572 $ 6 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:
es Note: 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. Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Actual Results $ Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 $ 4 53 49,560 11,120 16,930 2,020 5,000 2,340 3,572 40,982 8,578 Flexible Budget Planning Budget
Transcribed Image Text:es Note: 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. Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Actual Results $ Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 $ 4 53 49,560 11,120 16,930 2,020 5,000 2,340 3,572 40,982 8,578 Flexible Budget Planning Budget
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS