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 63 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month	Cost per Course	Cost per Student
Instructor wages		$ 2,950
Classroom supplies			$ 300
Utilities	$ 1,230	$ 60
Campus rent	$ 4,700
Insurance	$ 2,300
Administrative expenses	$ 4,000	$ 42	$ 5

For example, administrative expenses should be $4,000 per month plus $42 per course plus $5 per student. The companys sales should average $890 per student.

The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below:

	Actual
Revenue	$ 53,170
Instructor wages	$ 11,080
Classroom supplies	$ 18,750
Utilities	$ 1,880
Campus rent	$ 4,700
Insurance	$ 2,440
Administrative expenses	$ 3,909

Required:

1. Prepare the companys planning budget for September.

2. Prepare the companys flexible budget for September.

3. Calculate the revenue and spending variances for September.