Exercise $9-6($Algo$)$ Working with More Than One Cost Driver $[$LO$9-2,$ LO$9-3,$ LO$9-5,$ LO$9-6]$

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:

Fixed

Cost per Cost per Cost per

Month Course Student

Instructor wages

$$2,930$

Classroom supplies

Utilities

$$1,220$

$$280$

Campus rent

$$4,700$

$$50$

Insurance $$2,100$

Administrative expenses $$3,700$

$$41$

$$4$

For example, administrative expenses should be $$3,700$ per month plus $$41$ per course plus $$4$ per student. The company's sales should average $$860$ 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 $58$ students. The actual operating results for September were as follows:

$\backslash$table$[[,$Actual$],[$Revenue$,$$$52,140$