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run two courses in a month and have a total of 61 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 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Instructor wages Classroom supples Unites Campus rent Insurance Administrative expenses Cost per Fixed Cost per Morth Cost per Course Student $ 1,210 $ 4.700 2.200 3,700 $ 2.940 $290 50 For example, administrative expenses should be $3,700 per month plus $45 per course plus $4 per student. The company's sales should average $880 per student The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Revenue Instructor wages Classroom supples Actual $ 50,780 $ 11,040 $ 17,540 Ubites $ 1,820 Campus rent $ 4,700 Insurance $ Administrative expenses $ 2.340 3.554 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 (ie, zero variance). Input all amounts as positive value Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Courses Students 4 55 Revenue Expenses Instructor wages $ 50,780 11,040 Classroom supplies 17,540 Utibles 1,820 Campus rent 4,700 Insurance 2,340 Administrative expenses 3,554 Total expense 40.994 Net operating income $ 9,786 Flexible Planning Budget Budget

run two courses in a month and have a total of 61 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 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Instructor wages Classroom supples Unites Campus rent Insurance Administrative expenses Cost per Fixed Cost per Morth Cost per Course Student $ 1,210 $ 4.700 2.200 3,700 $ 2.940 $290 50 For example, administrative expenses should be $3,700 per month plus $45 per course plus $4 per student. The company's sales should average $880 per student The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below: Revenue Instructor wages Classroom supples Actual $ 50,780 $ 11,040 $ 17,540 Ubites $ 1,820 Campus rent $ 4,700 Insurance $ Administrative expenses $ 2.340 3.554 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 (ie, zero variance). Input all amounts as positive value Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Courses Students 4 55 Revenue Expenses Instructor wages $ 50,780 11,040 Classroom supplies 17,540 Utibles 1,820 Campus rent 4,700 Insurance 2,340 Administrative expenses 3,554 Total expense 40.994 Net operating income $ 9,786 Flexible Planning Budget Budget

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 38P: Greiner Company makes and sells high-quality glare filters for microcomputer monitors. John Craven,...
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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 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Cost per Fixed Cost per Month Cost per Course Student 2,940 $ 290 1,210 $ 50 4,700 2,200 3,700 $ 46 $ For example, administrative expenses should be $3,700 per month plus 546 per course plus $4 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below. Revenue Actual 50,780 Instructor wages $ 11,040 Classroom supplies S 17,540 Utilities $ 1,820 Campus rent S 4.700 Insurance $ Administrative expenses $ 2,340 3.554 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 (ie., zero variance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month ended September 30 Actual Results Courses Students 4 55 Revenue $ 50,780 Expenses Instructor wages 11,040 Classroom supplies 17,540 Utilities 1,820 Campus rent 4,700 Insurance 2,340 Administrative expenses 3,554 Total expense 40,994 Net operating income 9,786 Flexible Planning Budget Budget
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 61 students enrolled in those two courses. Data concerning the company's cost formulas appear below. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Cost per Fixed Cost per Month Cost per Course Student 2,940 $ 290 1,210 $ 50 4,700 2,200 3,700 $ 46 $ For example, administrative expenses should be $3,700 per month plus 546 per course plus $4 per student. The company's sales should average $880 per student. The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below. Revenue Actual 50,780 Instructor wages $ 11,040 Classroom supplies S 17,540 Utilities $ 1,820 Campus rent S 4.700 Insurance $ Administrative expenses $ 2,340 3.554 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 (ie., zero variance). Input all amounts as positive values.) Gourmand Cooking School Flexible Budget Performance Report For the Month ended September 30 Actual Results Courses Students 4 55 Revenue $ 50,780 Expenses Instructor wages 11,040 Classroom supplies 17,540 Utilities 1,820 Campus rent 4,700 Insurance 2,340 Administrative expenses 3,554 Total expense 40,994 Net operating income 9,786 Flexible Planning Budget Budget
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