70.2K

Verified Solution

Link Copied!

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: Fixed Cost per cost per cost per Month Course Student $2.950 S 55 Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses $1,220 $4,600 $2.000 $3.500 $ 41 For example, administrative expenses should be $3,500 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 62 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below: Revenue Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 50,420 $11.080 $ 17,830 $ 1,850 $ 4.600 $ 2.140 $ 3.338 Required: 1. Prepare the company's planning budget for September. 2. Prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September

Answer & Explanation Solved by verified expert

See Answer