Apps Chapter 9 Homework 1 Exercise 9-6 (Algo) Working with More Than One Cost Driver (LO9-2, LO9-3, LO9-5, LO9-6] 10 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 60 students enrolled in those two courses. Data concerning the company's cost formulas appear below: eBook Instructor wages classroon supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Coat per cont per Month Course student $2.940 $310 $1,250 $ 85 54.900 52.100 $3.500 $ 42 References For example, administrative expenses should be $3.500 per month plus $42 per course plus $5 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 60 students, however, it actually ran four courses with a total of only 54 students. The actual operating results for September were as follows: Revenue Instructor vages CIASsroom supplies Utilities Campus rent Insurance Administrative expenses Actual $49.900 $11,040 $ 18,450 $ 2,000 $ 4,900 $ 2,240 $ 3,394 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 (.e., zero variance). Input all amounts as positive values.) 1 For example, administrative expenses should be $3.500 per month plus 542 per course plus 55 per student. The company's sales should average $880 per student The company planned to run four courses with a total of 60 students, however, it actually ran four courses with a total of only 54 students. The actual operating results for September were as follows: Atual Revenue Instructor wages $ 11,040 classroon supplies $ 18,450 Utilities $ 2,000 Campus rent $ 4,900 Insurance $ 2.240 Administrative expenses 5 3,394 ta ook in 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 (.e., zero variance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Actual Results Budget Planning Budget 4 Courses Students 54 $ 49,900 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11,040 18,450 2,000 4,900 2.240 3,394 42,024 7,876 $ Prev 1 of 3 BE Next >