The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses 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 60 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 Utilities Campus rent Insurance Administrative expenses $ 2,930 $ 290 $1,210 $ 4,900 $2,400 $ 3,600 85 45 $ 7 For example, administrative expenses should be $3,600 per month plus $45 per course plus $7 per student. The company's salee should average $870 per student The company planned to run four courses with a total of 60 students however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below: Actual 2 49,300 $ 11,000 $ 17,250 $ 1,960 $ 4,980 $ 2,540 $ 3,626 Revenue Instructor wages classroom supplies Canpus rent Insurance Aoninistrative expenses Required:

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Chapter1: Financial Statements And Business Decisions
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HW ch 9
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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 60 students enrolled in those two courses. Data concerning the company's cost formulas
appear below:
Fixed Cost Cost per
Cost per
per Month
Course
Student
Instructor wages
Classroom supplies
Utilities
$ 2,930
$ 290
$1,210
$ 4,900
$ 2,400
$ 3,600
ces
85
Campus rent
Insurance
Administrative expenses
45
For example, administrative expenses should be $3,600 per month plus $45 per course plus $7 per student The company's sales
should average $870 per student
The company planned to run four courses with a total of 60 students however, it actually ran four courses with a total of only 56
students. The actual operating results for September appear below:
Actual
2 49,300
$ 11,000
$ 17,250
$ 1,960
$ 4,980
$ 2,546
$3,626
Revenue
Instructor wages
classroom supplies
Campus rent
Insurance
Aaninistrative wxpenses
Required:
of
Transcribed Image Text:HW ch 9 Saved 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 60 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per per Month Course Student Instructor wages Classroom supplies Utilities $ 2,930 $ 290 $1,210 $ 4,900 $ 2,400 $ 3,600 ces 85 Campus rent Insurance Administrative expenses 45 For example, administrative expenses should be $3,600 per month plus $45 per course plus $7 per student The company's sales should average $870 per student The company planned to run four courses with a total of 60 students however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below: Actual 2 49,300 $ 11,000 $ 17,250 $ 1,960 $ 4,980 $ 2,546 $3,626 Revenue Instructor wages classroom supplies Campus rent Insurance Aaninistrative wxpenses Required: of
con=con&external_browser%3D0&launchUrl=https%253A%252F%252Felearn.lau.edu.lb%252Fwebap
Wch 9
Saved
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.)
Gourmand Cooking School
Flexible Budget Performance Report
For the Month Ended September 30
Flexible
Budget
Planning
Budget
Actual Results
Courses
4
4
Students
56
56
Revenue
49,300
Expenses:
Instructor wages
11,000
Classroom supplies
17,250
Utilities
1,960
Campus rent
4,900
Insurance
2,540
Administrative expenses
3,626
Total expense
41.276
8.024
Net operating income
Prey
1 of 1
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Transcribed Image Text:con=con&external_browser%3D0&launchUrl=https%253A%252F%252Felearn.lau.edu.lb%252Fwebap Wch 9 Saved 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.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget Planning Budget Actual Results Courses 4 4 Students 56 56 Revenue 49,300 Expenses: Instructor wages 11,000 Classroom supplies 17,250 Utilities 1,960 Campus rent 4,900 Insurance 2,540 Administrative expenses 3,626 Total expense 41.276 8.024 Net operating income Prey 1 of 1 Next
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