The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Month Cost per Student Course $2,930 Instructor wages $ 280 Classroom supplies. Utilities $1,220 $ 60 Campus rent $5,100 $2,400 Insurance Administrative expenses $3,800 $ 42 $ 6 For example, administrative expenses should be $3,800 per month plus $42 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 64 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September were as follows: Actual $53,420 Revenue Instructor wages $11,000 $17,770 Classroom supplies Utilities $ 1,870 Campus rent $ 5,100 Insurance $ 2,540 Administrative expenses $ 3,778 Required: Prepare a 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 Actual Results Spending Variances Flexible Budget Activity Variances Planning Budget Courses Students 4 60 Revenue $ 53,420 $ Expenses: 11,000 17,770 1,870 5,100 2,540 3,778 42,058 11,362 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income $ 4 60 $ 52,800 4 64 56,320 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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Month Cost per Student Course $2,930 Instructor wages $ 280 Classroom supplies. Utilities $1,220 $ 60 Campus rent $5,100 $2,400 Insurance Administrative expenses $3,800 $ 42 $ 6 For example, administrative expenses should be $3,800 per month plus $42 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 64 students; however, it actually ran four courses with a total of only 60 students. The actual operating results for September were as follows: Actual $53,420 Revenue Instructor wages $11,000 $17,770 Classroom supplies Utilities $ 1,870 Campus rent $ 5,100 Insurance $ 2,540 Administrative expenses $ 3,778 Required: Prepare a 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 Actual Results Spending Variances Flexible Budget Activity Variances Planning Budget Courses Students 4 60 Revenue $ 53,420 $ Expenses: 11,000 17,770 1,870 5,100 2,540 3,778 42,058 11,362 Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income $ 4 60 $ 52,800 4 64 56,320
Expert Answer:
Answer rating: 100% (QA)
Budget The budget is a plan which is prepared for a specific period for expenditures or incomes rela... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
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 reportsthe number of courses and...
-
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...
-
The Toque Cooking Academy runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reportsthe number of courses and the...
-
Gagnon's Autobody Ltd. repairs and paints automobiles after accidents. Explain how the basic statement of financial position accounts of assets, liabilities, and shareholders' equity would be...
-
What is the purpose of the DBMS?
-
What do you understand by Parseval's theorem as applied to Fourier series? Parseval's theorem anb = [bx + abiz iabjez +abr +.. 12/17 2 1 2 = ab + ab+... (2 b + 0 + 0 + 2;by + ... by + + ...) +* -R
-
Identify and briefly explain the primary purpose of the audit objectives that are applicable to tests of balances.
-
Entries for Equipment Acquisitions Chopin Engineering Corporation purchased conveyor equipment with a list price of $15,000. Presented below are three independent cases related to the equipment....
-
2. Skywalker Corporation produces hand-made custom lightsabers for the most die-hard Star Wars fans. Each fan has their own individual lightsaber that they special order to fit their needs. Skywalker...
-
Orion Controls is a leading manufacturer of industrial valve systems, and Nathan Armstrong, head of Marketing, had been contacted by Andre Gide, EVP of Avion Chemical to place an order for 50 of...
-
Mrs. Hart, at age 65, can expect to live for 25 years. If she can invest at 10% per annum compounded monthly, how much does she need now to guarantee herself $1000 every month for the next 25 years?
-
How is Islamic banking different from Conventional banking? Please provide an example. Explain the main products offered by the Islamic Banks. provide some examples.
-
What are the Ethical Considerations for remuneration approaches? Do you agree with the excessive CEO compensation? Please provide an example and justify your answer. Define restricted stocks. Provide...
-
In a multi-product break-even analysis, we use a blended or weighted average contribution margin. Why must we use this "fictitious" number rather than actual contribution margins in computing a...
-
1: How well do Cummins' vision, mission, and value statements provide a framework for Cummins' decision to follow to the requirements of the EPA consent decree? 2: Considering Cummins strategic...
-
On January 1 , 2 0 2 2 , Cargo Airlines Inc. ( CAI ) ( uses IFRS and has a December 3 1 year - end ) issued $ 5 , 0 0 0 , 0 0 0 of 4 % bonds which pay interest on June 3 0 and December 3 1 , and...
-
A bicycle has a listed price of $753.99 before tax. If the sales tax rate is 6.5%, find the total cost of the bicycle with sales tax included. Round your answer to the nearest cent, as necessary. 1...
-
Identify the most stable compound:
-
Genola Fashions began production of a new product on June 1. The company uses a standard cost system and has established the following standards for one unit of the new product: During June, the...
-
Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a standard cutlery set and a deluxe set and sells them to retail department stores throughout the country....
-
Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for...
-
How could bottleneck management's recommendations concerning the distinction between activation and utilization relate to personal time management?
-
Line balancing is a technique for scheduling for a system that produces at what level of volume?
-
Give an example in which more than one priority rule is used simultaneously to create a sequence.
Study smarter with the SolutionInn App