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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 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 65 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		$ 2,930
Classroom supplies			$ 280
Utilities	$ 1,210	$ 50
Campus rent	$ 5,100
Insurance	$ 2,400
Administrative expenses	$ 3,600	$ 45	$ 5

For example, administrative expenses should be $3,600 per month plus $45 per course plus $5 per student. The companys sales should average $850 per student.

The company planned to run four courses with a total of 65 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	$ 52,350
Instructor wages	$ 11,000
Classroom supplies	$ 18,050
Utilities	$ 1,820
Campus rent	$ 5,100
Insurance	$ 2,540
Administrative expenses	$ 3,531

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September.

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