The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two...

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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 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 65 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost Cost per Cost per per Month Course $2,980 Student $280 $1,210 $ 85 $5,000 $2,100 $3,500 $ 42 $ 6 For example, administrative expenses should be $3,500 per month plus $42 per course plus $6 per student. The company's 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 55 students. The actual operating results for September were as follows: Actual Revenue $ 52,350 Instructor wages $ 11,200 Classroom supplies $ 18,050 Utilities $ 1,960 Campus rent $ 5,000 Insurance $ 2,240 Administrative expenses $ 3,484 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 Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income S Flexible Budget Performance Report For the Month Ended September 30 Flexible Planning Actual Results Budget Budget 4 55 $ 52,350 11,200 18,050 1,960 5,000 2,240 3,484 41,934 10,416 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 65 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost Cost per Cost per per Month Course $2,980 Student $280 $1,210 $ 85 $5,000 $2,100 $3,500 $ 42 $ 6 For example, administrative expenses should be $3,500 per month plus $42 per course plus $6 per student. The company's 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 55 students. The actual operating results for September were as follows: Actual Revenue $ 52,350 Instructor wages $ 11,200 Classroom supplies $ 18,050 Utilities $ 1,960 Campus rent $ 5,000 Insurance $ 2,240 Administrative expenses $ 3,484 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 Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income S Flexible Budget Performance Report For the Month Ended September 30 Flexible Planning Actual Results Budget Budget 4 55 $ 52,350 11,200 18,050 1,960 5,000 2,240 3,484 41,934 10,416