6 Exercise 9-6 (Algo) Working with More Than One Cost Driver (LO9-2, LO9-3, LO9-5, L09-6) 0 oints 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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: oBook Print Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Pixed cost per cont per cost per Month Course Student $ 2,910 $280 $1,210 $ 75 $4,800 $2,200 $3,700 $ 41 $ 6 References For example, administrative expenses should be $3,700 per month plus $41 per course plus $6 per student. The company's sales should average $870 per student The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September were as follows: Revenue Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 52,780 $ 10,920 $ 17,770 $ 1,920 $ 4,800 $ 2,340 $ 3,674 Required: Prepare a flexible budget performance report that shows both revenue and spending varlances 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.) Anuman ang lahat Not 6 Instructor wages classroon supplies Utilities Campus rent Insurance Administrative expenses 310,920 $ 17,770 $ 1,920 $ 4,800 $ 2.340 $ 3,674 10 points 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.) oBook Print Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget References Planning Budget 4 Courses Students 56 $ 52,780 Activity Variances Revenue and Spending Variances Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 10.920 17,770 1,920 4,800 2,340 3,674 41,424 11,358