EXERCISE 9-12 Working with More Than One Cost Driver L09-10, L09-2@.L09-3@ 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 reportsthe 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 50 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Fixed Cost Cost per Cost per per Month Course Student $3,080 $260 $870 $130 $4,200 $ 1,890 $3,270 $15 $4 Campus rent Insurance Administrative expenses For example, administrative expenses should be $3,270 per month plus S15 per course plus $4 per student. The company's sales should average $800 per student The company planned to run three courses with a total of 45 students: however, it actually ran three courses with a total of only 42 students. The actual operating results for September appear below: The company planned to run three courses with a total of 45 students, however, it actually ran three courses with a total of only 42 students. The actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $32,400 $9,080 $8,540 $1,530 $4,200 $1,890 $3,790 Required: 1. Using Exhibit 9-2 as your guide, prepare the company's planning budget for September 2. Using Exhibit 9-5 as your guide, prepare the company's flexible budget for September. 3. Calculate the revenue and spending variances for September. (Hint: Refer to Exhibit 9-69.)