The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses inits budgeting and performance reports-the number of courses and the total number of students. For example, the school might runtwo courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company's cost formulasappear below:Instructor wagesClassroom suppliesUtilitiesCampus rentInsuranceAdministrative expensesFixedCost per Cost per Cost perMonthStudentCourse$ 2,910$ 1,240$ 4,500$ 2,100$ 3,500RevenueInstructor wagesClassroom suppliesUtilitiesCampus rentInsuranceAdministrative expenses$ 80Actual$ 53,170$ 10,920$ 17,490$ 41For example, administrative expenses should be $3,500 per month plus $41 per course plus $5 per student. The company's salesshould average $890 per student.$ 1,970$ 4,500$ 2,240$ 3,405$ 280The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 61students. The actual operating results for September were as follows:$ 5Required: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., zerovariance). Input all amounts as positive values.)

Gourmand Cooking School Flexible Budget Performance Report For the month Ended September 30…

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 63 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 Month Course $ 2,910 $ 1,240 $ 4,500 $ 2,100 $ 3,500 $ 80 $ 41 Actual Cost per Student $ 280 $ 5 For example, administrative expenses should be $3,500 per month plus $41 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:

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 63 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 Month Course $ 2,910 $ 1,240 $ 4,500 $ 2,100 $ 3,500 $ 80 $ 41 Actual Cost per Student $ 280 $ 5 For example, administrative expenses should be $3,500 per month plus $41 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:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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