Exercise 9-6 (Algo) Working with More Than One Cost Driver (LO9-2, LO9-3, LO9-5, L09-6] 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 65 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 $ 2,970 Classroom supplies 5300 Utilities $1,250 $65 Campus rent $ 4,500 Insurance $ 2,300 Administrative expenses $3,900 5.6 For example, administrative expenses should be $3,900 per month plus $43 per course plus $6 per student. The company's sales should average $880 per student The company planned to run four courses with a total of 65 students, however, it actually ran four courses with a total of only 59 students. The actual operating results for September were as follows. Revenue Instructor was Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 54,300 $11,160 $ 19,350 51.920 $.4.300 $ 2,440 $ 3,888 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Actual Results Budget Planning Budget 4 59 54,300 Courses Students Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11 160 19,350 1.920 4.800 2,440 3.888 43,558 10,742 TUT ILI $ Exercise 9-6 (Algo) Working with More Than One Cost Driver (LO9-2, LO9-3, LO9-5, L09-6] 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 65 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 $ 2,970 Classroom supplies 5300 Utilities $1,250 $65 Campus rent $ 4,500 Insurance $ 2,300 Administrative expenses $3,900 5.6 For example, administrative expenses should be $3,900 per month plus $43 per course plus $6 per student. The company's sales should average $880 per student The company planned to run four courses with a total of 65 students, however, it actually ran four courses with a total of only 59 students. The actual operating results for September were as follows. Revenue Instructor was Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 54,300 $11,160 $ 19,350 51.920 $.4.300 $ 2,440 $ 3,888 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Actual Results Budget Planning Budget 4 59 54,300 Courses Students Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income 11 160 19,350 1.920 4.800 2,440 3.888 43,558 10,742 TUT ILI $