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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. $1,210 $4,900 $2,200 Administrative expenses $3,600 $45 For example, administrative expenses should be $3,600 per month plus $45 per course plus $4 per student. The company's sales. should average $860 per student. Revenue Instructor wages Classroom supplies Utilities Fixed Cost per Month Cost per Course Cost per Student $ 2,920 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: Campus rent $1,880 $ 4,900 $ 2,340 Administrative expenses $3,450 Insurance $65 Actual $ 49,560 $ 10,960 $ 18,150 $300 $4 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. $1,210 $4,900 $2,200 Administrative expenses $3,600 $45 For example, administrative expenses should be $3,600 per month plus $45 per course plus $4 per student. The company's sales. should average $860 per student. Revenue Instructor wages Classroom supplies Utilities Fixed Cost per Month Cost per Course Cost per Student $ 2,920 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: Campus rent $1,880 $ 4,900 $ 2,340 Administrative expenses $3,450 Insurance $65 Actual $ 49,560 $ 10,960 $ 18,150 $300 $4 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.)

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
Chapter18: Pricing And Profitability Analysis
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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 $ 4,900 $2,200 Administrative expenses $3,600 $ 45 For example, administrative expenses should be $3,600 per month plus $45 per course plus $4 per student. The company's sales should average $860 per student. Revenue Actual $ 49,560 $ 10,960 $ 18,150 $ 1,880 $ 4,900 $ 2,340 Administrative expenses $3,450 Instructor wages Classroom supplies Fixed Cost per Month Cost per Course Cost per Student $ 2,920 Utilities $1,210 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: Campus rent Insurance $ 65 $ 300 $4 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.)
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 $ 4,900 $2,200 Administrative expenses $3,600 $ 45 For example, administrative expenses should be $3,600 per month plus $45 per course plus $4 per student. The company's sales should average $860 per student. Revenue Actual $ 49,560 $ 10,960 $ 18,150 $ 1,880 $ 4,900 $ 2,340 Administrative expenses $3,450 Instructor wages Classroom supplies Fixed Cost per Month Cost per Course Cost per Student $ 2,920 Utilities $1,210 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: Campus rent Insurance $ 65 $ 300 $4 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.)
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