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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 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 Fixed Cost per Cost per Month Course $ 2,978 $ 75 $ 1,238 $ 5,000 $ 2,200 $ 3,700 $ 46 Cost per Student Actual $ 270 $3 For example, administrative expenses should be $3.700 per month plus $46 per course plus $3 per student. The company's sales should average $900 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September were as follows:

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 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 Fixed Cost per Cost per Month Course $ 2,978 $ 75 $ 1,238 $ 5,000 $ 2,200 $ 3,700 $ 46 Cost per Student Actual $ 270 $3 For example, administrative expenses should be $3.700 per month plus $46 per course plus $3 per student. The company's sales should average $900 per student. The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September were as follows:

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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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 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 Courses Students Revenue Expenses: Fixed Cost per Cost per Month $ 46 For example, administrative expenses should be $3.700 per month plus $46 per course plus $3 per student. The company's sales should average $900 per student. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income $ 1,238 $ 5,000 $ 2,200 $ 3,700 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September were as follows: $ $ Actual $ 53,800 $ 11,168 $ 16,860 $ 1,948 $ 5,000 $ 2,340 $ 3,499 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero verlance). Input all amounts as positive values.) Actual Results Course $ 2,978 $ 75 Cost per Student $ 270 4 57 53,800 11,160 16,860 1,940 5,000 2,340 3,499 40,799 13,001 $ 3 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget Planning 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 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 Courses Students Revenue Expenses: Fixed Cost per Cost per Month $ 46 For example, administrative expenses should be $3.700 per month plus $46 per course plus $3 per student. The company's sales should average $900 per student. Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income $ 1,238 $ 5,000 $ 2,200 $ 3,700 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September were as follows: $ $ Actual $ 53,800 $ 11,168 $ 16,860 $ 1,948 $ 5,000 $ 2,340 $ 3,499 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero verlance). Input all amounts as positive values.) Actual Results Course $ 2,978 $ 75 Cost per Student $ 270 4 57 53,800 11,160 16,860 1,940 5,000 2,340 3,499 40,799 13,001 $ 3 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget Planning Budget
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