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 reportsthe 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 students enrolled in those two courses. Data concerning the
company's cost formulas appear below:
For example, administrative expenses should be $ per month plus $ per course plus $ per student. The company's
sales should average $ per student.
The company planned to run four courses with a total of students; however, it actually ran four courses with a total of only
students. The actual operating results for September were as follows:
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 ie zero variance Input all amounts as positive values.
