Avon Technical Institute has used the following budgeted amounts for its controllable costs during 2020.

Required

(a) Prepare a budget performance report for 2020 by preparing a budget for each cost item based on its fixed cost plus the variable cost per student multiplied by the actual number of students enrolled. Compare this budget for 1500 students with the actual costs incurred.

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Cost items Administration salaries Electricity Maintenance Fixed amount $120,000 42 200 Variable cost per student enrolled $ 2.40 0.72 40000 0.80 Supplies 36600 3.20 Copying 12000 20.00 Government charges 52 000