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 63 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month	Cost per Course	Cost per Student
Instructor wages		$ 2,920
Classroom supplies			$ 310
Utilities	$ 1,230	$ 55
Campus rent	$ 4,900
Insurance	$ 2,200
Administrative expenses	$ 3,900	$ 40	$ 4

For example, administrative expenses should be $3,900 per month plus $40 per course plus $4 per student. The companys 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:

	Actual
Revenue	$ 53,170
Instructor wages	$ 10,960
Classroom supplies	$ 19,380
Utilities	$ 1,860
Campus rent	$ 4,900
Insurance	$ 2,340
Administrative expenses	$ 3,738

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 (i.e., zero variance). Input all amounts as positive values.)

Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget 4 Courses Students 4 61 53,170 4 61 $ Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 10,960 19,380 1,860 4,900 2,340 3,738 43,178 9,992 $