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Exercise 9-6(Algo) Working with More Than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6] ...

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Accounting

Exercise 9-6(Algo) Working with More Than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6]
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes - 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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below:
\table[[,\table[[Fixed],[Cost],[per],[Month]],\table[[Cost],[per],[Course Student]],\table[[Cost],[per]],],[Instructor wages,,2,980,,],[Classroom supplies,,,$290,],[Utilities,1,220,$75,,],[Campus rent,5,200,,,],[Insurance,2,200,,,],[Administrative,3,800,$41,$4,],[expenses,,,,]]
For example, administrative expenses should be $3,800 per month plus $41 per course plus $4 per student. The company's sales should average $860 per student.
The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September were as follows:
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