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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 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 63 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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost Cost per Cost per per Month Student $290 For example, administrative expenses should be $3,600 per month plus $41 per course plus 54 per student. The company's sales should average $890 per student The actual operating results for September appear below: Revenue Expenses Instructor wages Classroom supphes Utlites Campus rent Insurance Course $2.930 $1,200 $4,600 $2.000 $3,800 $ 41 $ 4 Required: 1. The Gourmand Cooking School expects to run four courses with a total of 63 students in September Complete the company's planning budget for this level of activity $ 90 Gourmand Cooking School Planning Budget For the Month Ended September 30 Total expense Net operating income Actual $53.170 $ 11,000 $18,120 $ 1.970 $ 4,600 Administrative expenses $ 2,140 $ 3,642

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 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 63 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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost Cost per Cost per per Month Student $290 For example, administrative expenses should be $3,600 per month plus $41 per course plus 54 per student. The company's sales should average $890 per student The actual operating results for September appear below: Revenue Expenses Instructor wages Classroom supphes Utlites Campus rent Insurance Course $2.930 $1,200 $4,600 $2.000 $3,800 $ 41 $ 4 Required: 1. The Gourmand Cooking School expects to run four courses with a total of 63 students in September Complete the company's planning budget for this level of activity $ 90 Gourmand Cooking School Planning Budget For the Month Ended September 30 Total expense Net operating income Actual $53.170 $ 11,000 $18,120 $ 1.970 $ 4,600 Administrative expenses $ 2,140 $ 3,642

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
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 36P: DeMarco Company is developing a cost formula for its packing activity. Discussion with the workers...
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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 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 63 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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month For example, administrative expenses should be $3,600 per month plus $41 per course plus 54 per student. The company's sales should average $890 per student. The actual operating results for September appear below: Cost per Cost per Course Student $2.930 $290 $1,200 $4,600 $2,000 $3,800 $ 41 $ 4 Revenue Expenses $ 90 Actual $53.170 $ 11,000 $18,120 $ 1.970 $ 4,600 Required: 1. The Gourmand Cooking School expects to run four courses with a total of 63 students in September Complete the company's planning budget for this level of activity Instructor wages Classroom supphes Utlites Campus rent Insurance Administrative expenses Total expense Net operating income $ 2.140 $ 3,642 Gourmand Cooking School Planning Budget For the Month Ended September 20
Transcribed Image Text: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 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 63 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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month For example, administrative expenses should be $3,600 per month plus $41 per course plus 54 per student. The company's sales should average $890 per student. The actual operating results for September appear below: Cost per Cost per Course Student $2.930 $290 $1,200 $4,600 $2,000 $3,800 $ 41 $ 4 Revenue Expenses $ 90 Actual $53.170 $ 11,000 $18,120 $ 1.970 $ 4,600 Required: 1. The Gourmand Cooking School expects to run four courses with a total of 63 students in September Complete the company's planning budget for this level of activity Instructor wages Classroom supphes Utlites Campus rent Insurance Administrative expenses Total expense Net operating income $ 2.140 $ 3,642 Gourmand Cooking School Planning Budget For the Month Ended September 20
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