The Gourmand Cooking School runs short cooking courses at itssmall campus. Management has identified two cost drivers it uses inits budgeting and performance reports—the number of courses and thetotal number of students. For example, the school might run twocourses in a month and have a total of 62 students enrolled inthose two courses. Data concerning the company’s cost formulasappear below:

	Fixed Cost per Month		Cost per Course		Cost per Student
Instructor wages			$	2,900
Classroom supplies					$	260
Utilities	$	1,210	$	80
Campus rent	$	4,700
Insurance	$	2,400
Administrative expenses	$	3,800	$	43	$	6

For example, administrative expenses should be $3,800 per monthplus $43 per course plus $6 per student. The company’s sales shouldaverage $900 per student.

The company planned to run four courses with a total of 62students; however, it actually ran four courses with a total ofonly 54 students. The actual operating results for September appearbelow:

	Actual
Revenue	$	52,900
Instructor wages	$	10,880
Classroom supplies	$	15,970
Utilities	$	1,940
Campus rent	$	4,700
Insurance	$	2,540
Administrative expenses	$	3,770

Required:

Prepare a flexible budget performance report that shows bothrevenue and spending variances and activity variances forSeptember. (Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positivevalues.)