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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 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 Month $ 1,240 $5,000 $ 2,200 $4,000 Revenue Instructor wages Classroom supplies utilities Campus rent Insurance Administrative expenses Cost per Course $ 2,948 $75 $45 $4 For example, administrative expenses should be $4,000 per month plus $45 per course plus $4 per student. The company's sales should average $880 per student. Actual $ 51,660 $ 11,040 $ 18,450 $ 1,950 $5,000 $ 2,340 $ 3,854 The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September appear below: Cost per Student $ 300 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September

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 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 Month $ 1,240 $5,000 $ 2,200 $4,000 Revenue Instructor wages Classroom supplies utilities Campus rent Insurance Administrative expenses Cost per Course $ 2,948 $75 $45 $4 For example, administrative expenses should be $4,000 per month plus $45 per course plus $4 per student. The company's sales should average $880 per student. Actual $ 51,660 $ 11,040 $ 18,450 $ 1,950 $5,000 $ 2,340 $ 3,854 The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September appear below: Cost per Student $ 300 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September

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
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 5TIF: The following situations describe scenarios that could use managerial accounting information: a. The...
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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 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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month $ 1,240 $5,000 $ 2,200 $4,000 Required 1 Required 2 Cost per Course $ 2,940 $75 For example, administrative expenses should be $4,000 per month plus $45 per course plus $4 per student. The company's sales should average $880 per student. Actual $ 51,660 $ 11,040 $ 18,450 $1,950 $5,000 $ 2,340 $ 3,854 $45 The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September appear below: Cost per Student Required 3 $ 300 $4 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September. Complete this question by entering your answers in the tabs below.
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 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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month $ 1,240 $5,000 $ 2,200 $4,000 Required 1 Required 2 Cost per Course $ 2,940 $75 For example, administrative expenses should be $4,000 per month plus $45 per course plus $4 per student. The company's sales should average $880 per student. Actual $ 51,660 $ 11,040 $ 18,450 $1,950 $5,000 $ 2,340 $ 3,854 $45 The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September appear below: Cost per Student Required 3 $ 300 $4 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September. Complete this question by entering your answers in the tabs below.
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