The Gourmand Cooking School runs short cooking courses at its small campus. Management has identifled 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 50 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Cost per Course $3,080 Month Student Instructor vages Classroon supplies Utilities Campus rent Insurance Administrative expenses $260 870 $ 4, 200 $1,890 $3,270 $ 130 For example, administrative expenses should be $3.270 per month plus $15 per course plus $4 per student. The company's sales should average $800 per student. The company planned to run three courses with a total of 45 students; however, it actually ran three courses with a total of only 42 students. The actual operating results for September appear below. Actual $ 32,400 $ 9,080 $8,540 $ 1,530 Revenue Instructor vages classroom supplies Utilities Campus rent

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identifled 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 50 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Cost per Course $3,080 Month Student Instructor vages Classroon supplies Utilities Campus rent Insurance Administrative expenses $260 870 $ 4, 200 $1,890 $3,270 $ 130 For example, administrative expenses should be $3.270 per month plus $15 per course plus $4 per student. The company's sales should average $800 per student. The company planned to run three courses with a total of 45 students; however, it actually ran three courses with a total of only 42 students. The actual operating results for September appear below. Actual $ 32,400 $ 9,080 $8,540 $ 1,530 Revenue Instructor vages classroom supplies Utilities Campus rent

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter23: Flexible Budgeting (flexbud)

Section: Chapter Questions

Problem 5R

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Sales, production, direct materials purchases, and direct labor cost budgets The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: Estimated sales for July by sales territory: Estimated inventories at July 1: Desired inventories at July 31: Direct materials used in production: Anticipated purchase price for direct materials: Direct labor requirements: Instructions Prepare a sales budget for July. Prepare a production budget for July. Prepare a direct materials purchases budget for July. Prepare a direct labor cost budget for July.
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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 Cost per per Month Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $1,240 5 75 $5,000 $2,200 $3,600 $ 44 Courses Course $ 2,950 For example, administrative expenses should be $3,600 per month plus $44 per course plus $6 per student. The company's sales should average $890 per student The company planned to run four courses with a total of 62 students, however, it actually ran four courses with a total of only 58 students. The actual…
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