EXERCISE 9-18 Working with More Than One Cost Driver [L09-4, L09-5] The Gourmand Cooking School runs short cooking courses at its small campus. Management has identi- fied two cost drivers that 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 50 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per per Month Course Student Instructor wages $3,080 Classroom supplies $260 Utilities ... $870 $130 Campus rent $4,200 Insurance ... $1,890 Administrative expenses $3,270 $15 $4 For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company's sales should average $800 per student. The actual operating results for September appear below: Actual Revenue Instructor wages Classroom supplies Utilities ... Campus rent Insurance .. Administrative expenses $32,400 $9,080 $8,540 $1,530 $4,200 $1,890 $3,790 Required: 1. The Gourmand Cooking School expects to run three courses with a total of 45 students in September. Prepare the company's planning budget for this level of activity. 2. The school actually ran three courses with a total of 42 students in September. Prepare the company's flexible budget for this level of activity. 3. Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. EXERCISE 9-18 Working with More Than One Cost Driver [L09-4, L09-5] The Gourmand Cooking School runs short cooking courses at its small campus. Management has identi- fied two cost drivers that 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 50 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per per Month Course Student Instructor wages $3,080 Classroom supplies $260 Utilities ... $870 $130 Campus rent $4,200 Insurance ... $1,890 Administrative expenses $3,270 $15 $4 For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company's sales should average $800 per student. The actual operating results for September appear below: Actual Revenue Instructor wages Classroom supplies Utilities ... Campus rent Insurance .. Administrative expenses $32,400 $9,080 $8,540 $1,530 $4,200 $1,890 $3,790 Required: 1. The Gourmand Cooking School expects to run three courses with a total of 45 students in September. Prepare the company's planning budget for this level of activity. 2. The school actually ran three courses with a total of 42 students in September. Prepare the company's flexible budget for this level of activity. 3. Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September