GEN COMBO LOOSELEAF INTRODUCTION TO MANAGERIAL ACCOUNTING; CONNECT AC
8th Edition
ISBN: 9781260259179
Author: BREWER
Publisher: MCG
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Chapter 9, Problem 12E
Working with More Than One Cost Driver
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 50 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: 
For example, administrative expenses should be 53.270 per month plus S15 per course plus 54 per student. The companys sales should average 5800 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:
cRequired:
1. Using Exhibit 9-2 as your guide, prepare the company’s planning budget for September.
2. Using Exhibit 9-5 as your guide. prepare the company’s flexible budget for September.
3. Calculate the revenue and spending variances for September. (Hint: Refer to Exhibit 9−6.)
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The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports—the number of courses and thetotal number of students. For example, the school might run two courses in a month and have a total of 50students enrolled in those two courses. Data concerning the company’s cost formulas appear below:Fixed Cost Cost per Cost perper Month Course StudentInstructor wages .................. $3,080Classroom supplies ............. $260Utilities ................................. $870 $130Campus rent ........................ $4,200Insurance ............................. $1,890Administrative expenses ...... $3,270 $15 $4For 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 actual operating results for September appear below:ActualRevenue .........................................…
Required:
Prepare a flexible budget performance report that shows both revenue and spending variances and activity varlances 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
es
For the Month Ended September 30
Flexible
Planning
Budget
Actual Results
Budget
Courses
3.
Students
42
Revenue
$4
32,400
Expenses:
Instructor wages
9,080
8,540
Classroom supplies
Utilitios
1,530
Campus rent
4,200
Insurance
1,890
Administrative expenses
3,790
Total expense
29,030
Net operating income
3,370
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
Fixed
Cost per
Month
Utilities
Campus rent
Insurance
Administrative expenses
Cost per Cost per
Course
Student
$ 2,940
$ 280
$ 1,250
$ 70
$ 5,000
$ 2,200
$ 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 $880 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 operating results for September were as follows:
Revenue
Instructor wages…
Chapter 9 Solutions
GEN COMBO LOOSELEAF INTRODUCTION TO MANAGERIAL ACCOUNTING; CONNECT AC
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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 fin those two courses. Data conceming the company's cost formulas appear below: Cost per Course $ 2,920 Cost per Student Fixed cost per Month Instructor wages classroom supplies Utilities Campus rent Insurance $ 300 $ 1,210 $ 4,800 $ 2,300 $ 3,800 $75 Administrative expenses $ 40 $ 3 For example, administrative expenses should be $3,800 per month plus $40 per course plus $3 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 58 students. The actual operating results for September appear below: Actual $ 49,300 $ 10,960 $ 17,850 $…arrow_forwardThe Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that 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 per Month Cost per Course Cost per Student Instructor wages ... $2930 Classroom supplies ... $290 Utilities ... $1210 $85 Campus rent ... $4,900 Insurance ... $2400 Administrative expenses... $3,600 $45 $7 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 actual operating results for September appear below: The company planned to run four courses with a total of 60 students ; however , it actually ran four…arrow_forwardThe 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 61 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 Cost per Fixed Cost per Month Cost per Course Student 2,940 $ 290 1,210 $ 50 4,700 2,200 3,700 $ 46 $ For example, administrative expenses should be $3,700 per month plus 546 per course plus $4 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below. Revenue Actual 50,780 Instructor wages $ 11,040…arrow_forward
- 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 Cost per Month Student Course $ 2,910 $ 1,240 $ 4,500 $ 2,100 $ 3,500 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 80 Actual $ 53,170 $ 10,920 $ 17,490 $ 41 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. $ 1,970 $ 4,500 $ 2,240 $ 3,405 $ 280 The company planned to run four courses with a total of 63 students;…arrow_forward.arrow_forwardThe 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: Fixed Cost per Month Cost per Course Cost perStudent Instructor wages $ 2,960 Classroom supplies $ 300 Utilities $ 1,210 $ 90 Campus rent $ 5,000 Insurance $ 2,300 Administrative expenses $ 4,000 $ 43 $ 3 For example, administrative expenses should be $4,000 per month plus $43 per course plus $3 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 53 students. The actual…arrow_forward
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