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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 numbe of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Fixed Cost per Month Cost per Course $ 2,970 Cost per Student Classroom supplies $ 270 Utilities $ 1,230 $ 60 Campus rent $ 4,700 Insurance $ 2,100 Administrative expenses $ 3,900 $ 45 $5 For example, administrative expenses should be $3,900 per month plus $45 per course plus $5 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 61 students. The actual operating results for September were as follows: Revenue Actual $ 53,170 Instructor wages $ 11,160 Classroom supplies $ 16,860 Utilities $ 1,880 Campus rent $ 4,700 $ 2,240 $ 3,821 Insurance Administrative expenses Required: Prepare a flexible budget performance report for September. 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 expenses Net operating income Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Activity Varian 61 $ 53,170 $ 53,170 11,160 16,860 1,880 4,700 2,240 3,821 40,661 $ 12,509

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes-the numbe of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Fixed Cost per Month Cost per Course $ 2,970 Cost per Student Classroom supplies $ 270 Utilities $ 1,230 $ 60 Campus rent $ 4,700 Insurance $ 2,100 Administrative expenses $ 3,900 $ 45 $5 For example, administrative expenses should be $3,900 per month plus $45 per course plus $5 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 61 students. The actual operating results for September were as follows: Revenue Actual $ 53,170 Instructor wages $ 11,160 Classroom supplies $ 16,860 Utilities $ 1,880 Campus rent $ 4,700 $ 2,240 $ 3,821 Insurance Administrative expenses Required: Prepare a flexible budget performance report for September. 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 expenses Net operating income Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Activity Varian 61 $ 53,170 $ 53,170 11,160 16,860 1,880 4,700 2,240 3,821 40,661 $ 12,509

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 2CMA: Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing...
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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 numbe of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Fixed Cost per Month Cost per Course $ 2,970 Cost per Student Classroom supplies $ 270 Utilities $ 1,230 $ 60 Campus rent $ 4,700 Insurance $ 2,100 Administrative expenses $ 3,900 $ 45 $5 For example, administrative expenses should be $3,900 per month plus $45 per course plus $5 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 61 students. The actual operating results for September were as follows: Revenue Actual $ 53,170 Instructor wages $ 11,160 Classroom supplies $ 16,860 Utilities $ 1,880 Campus rent $ 4,700 $ 2,240 $ 3,821 Insurance Administrative expenses Required: Prepare a flexible budget performance report for September. 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 expenses Net operating income Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Activity Varian 61 $ 53,170 $ 53,170 11,160 16,860 1,880 4,700 2,240 3,821 40,661 $ 12,509
Transcribed Image Text:The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes-the numbe of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Fixed Cost per Month Cost per Course $ 2,970 Cost per Student Classroom supplies $ 270 Utilities $ 1,230 $ 60 Campus rent $ 4,700 Insurance $ 2,100 Administrative expenses $ 3,900 $ 45 $5 For example, administrative expenses should be $3,900 per month plus $45 per course plus $5 per student. The company's sales should average $890 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 61 students. The actual operating results for September were as follows: Revenue Actual $ 53,170 Instructor wages $ 11,160 Classroom supplies $ 16,860 Utilities $ 1,880 Campus rent $ 4,700 $ 2,240 $ 3,821 Insurance Administrative expenses Required: Prepare a flexible budget performance report for September. 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 expenses Net operating income Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Activity Varian 61 $ 53,170 $ 53,170 11,160 16,860 1,880 4,700 2,240 3,821 40,661 $ 12,509
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