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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 Fixed Cost per Cost per cost per Month Course Student $ 2,900 $ 1,220 $4,500 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 2,100 $ 3,700 $75 $ 42 For example, administrative expenses should be $3,700 per month plus $42 per course plus $4 per student. The company's sales should average $880 per student. $ 300 Actual $ 50,780 $ 10,000 $ 18,150 $ 1,930 $4,500 $ 2,240 $ 3,538 The company planned to run four courses with a total of 61 students, however, it actually ran four courses with a total of only 59 students. The actual operating results for September were as follows: 54 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.)

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 Fixed Cost per Cost per cost per Month Course Student $ 2,900 $ 1,220 $4,500 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $ 2,100 $ 3,700 $75 $ 42 For example, administrative expenses should be $3,700 per month plus $42 per course plus $4 per student. The company's sales should average $880 per student. $ 300 Actual $ 50,780 $ 10,000 $ 18,150 $ 1,930 $4,500 $ 2,240 $ 3,538 The company planned to run four courses with a total of 61 students, however, it actually ran four courses with a total of only 59 students. The actual operating results for September were as follows: 54 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.)

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 3PA: Lean accounting Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar...
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aces 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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Courses Students Revenue Expenses Instructor wages Classroom supplies $42 For example, administrative expenses should be $3,700 per month plus $42 per course plus $4 per student. The company's sales should average $880 per student. Utilities Campus rent Insurance Fixed Cost per Cost per Month Administrative expenses Total expense Net operating income $ 1,220 $4,500 $2,100 $ 3,700 The company planned to run four courses with a total of 61 students, however, it actually ran four courses with a total of only 59 students. The actual operating results for September were as follows: $ $ Actual $ 50,780 $ 10,880 $ 18,150 $1,930 $4,500 $2,240 $ 3,538 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.) Actual Results Course $ 2,900 $75 4 59 50,780 cost per Student 10,880 18.150 $ 300 1,930 4,500 2,240 3,538 41,238 9,542 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 $4 Flexible Budget Planning Budget
Transcribed Image Text:aces 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 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Courses Students Revenue Expenses Instructor wages Classroom supplies $42 For example, administrative expenses should be $3,700 per month plus $42 per course plus $4 per student. The company's sales should average $880 per student. Utilities Campus rent Insurance Fixed Cost per Cost per Month Administrative expenses Total expense Net operating income $ 1,220 $4,500 $2,100 $ 3,700 The company planned to run four courses with a total of 61 students, however, it actually ran four courses with a total of only 59 students. The actual operating results for September were as follows: $ $ Actual $ 50,780 $ 10,880 $ 18,150 $1,930 $4,500 $2,240 $ 3,538 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.) Actual Results Course $ 2,900 $75 4 59 50,780 cost per Student 10,880 18.150 $ 300 1,930 4,500 2,240 3,538 41,238 9,542 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 $4 Flexible Budget Planning Budget
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