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Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results 4 59 $ 50,780 10,880 15,710 1,880 5,100 2,140 3,717 39,427 Revenue and Spending Variances Flexible Budget 4 59 $ 51,920 11,600 15,340 1,470 5,100 2,000 4,277 39,787 Activity Variances Planning Budget 4 61 $53,680 11,600 15,860 1,470 5,100 2,000

Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results 4 59 $ 50,780 10,880 15,710 1,880 5,100 2,140 3,717 39,427 Revenue and Spending Variances Flexible Budget 4 59 $ 51,920 11,600 15,340 1,470 5,100 2,000 4,277 39,787 Activity Variances Planning Budget 4 61 $53,680 11,600 15,860 1,470 5,100 2,000

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...
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Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity for September. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None effect (i.e., zero variance). Input all amounts as positive values. Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 expenses Total expense Actual Results 10,880 15,710 1,880 5,100 2,140 3,717 39,427 Net operating income $ 11,353 4 59 $ 50,780 Revenue and Spending Variances Flexible Budget 4 59 $ 51,920 11,600 15,340 1,470 5,100 2,000 4,277 39,787 12,133 Activity Variances Planning Budget 4 61 $53,680 11,600 15,860 1,470 5,100 2,000
Transcribed Image Text:Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity for September. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None effect (i.e., zero variance). Input all amounts as positive values. Courses Students Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 expenses Total expense Actual Results 10,880 15,710 1,880 5,100 2,140 3,717 39,427 Net operating income $ 11,353 4 59 $ 50,780 Revenue and Spending Variances Flexible Budget 4 59 $ 51,920 11,600 15,340 1,470 5,100 2,000 4,277 39,787 12,133 Activity Variances Planning Budget 4 61 $53,680 11,600 15,860 1,470 5,100 2,000
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: Fixed Cost Revenue Cost Cost per per per Month Course Student Instructor wages Classroom supplies Utilities Campus rent Insurance 2,000 Administrative $ 41 expenses 3,700 For example, administrative expenses should be $3,700 per month plus $41 per course plus $7 per student. The company's sales should average $880 per student. Instructor wages, Classroom supplies Utilities. Campus rent Insurance Administrative expenses $ 2,900 1,230 $ 5,100 $60 The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total only 59 students. The actual operating results for September were as follows: Actual $ 50,780 10,880 $ 15,710 $ 1,880 $ 260 $ 5,100 $ 2,140 $ 3,717 $7 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. Note: 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.
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: Fixed Cost Revenue Cost Cost per per per Month Course Student Instructor wages Classroom supplies Utilities Campus rent Insurance 2,000 Administrative $ 41 expenses 3,700 For example, administrative expenses should be $3,700 per month plus $41 per course plus $7 per student. The company's sales should average $880 per student. Instructor wages, Classroom supplies Utilities. Campus rent Insurance Administrative expenses $ 2,900 1,230 $ 5,100 $60 The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total only 59 students. The actual operating results for September were as follows: Actual $ 50,780 10,880 $ 15,710 $ 1,880 $ 260 $ 5,100 $ 2,140 $ 3,717 $7 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. Note: 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.
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