Exercise 9-18 Working with More Than One Cost Driver [LO9-4, L09-5) The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified 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 65 students enrolled in those two courses. Data concerning the company's cost formulas appear below Cost Cost per Cost per per Fixed Month Course Student 2,930 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative 290 1,240 s 85 4,600 2,300 3,900 s 42 $ 5 expenses For example, administrative expenses should be $3,900 per month plus $42 per course plus $5 per student. The company's sales should average $850 per student. The actual operating results for September appear below: Actual 52,350 11,000 18,700 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance $1,990 $4,600 $2,440 Administrative expenses $ 3,819 Required: 1. The Gourmand Cooking School expects to run four courses with a total of 65 students in September. Complete the company's planning budget for this level of activity. Planning Budget For the Month Ended September 30 Expenses: Instructor wages Classroom supplies Utilities Campus rent Total expense Net operating income 2. The school actually ran four courses with a total of 63 students in September. Complete the company's flexible budget for this level of activity. Flexible Budget For the Month Ended September 30 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Total expense Net operating income . Complete the 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.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Revenue and Spending Variances Activity Variances Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income