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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 Classroon supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost per Cost per Month Student $ 270 Revenue Instructor wages Classroom supplies Utilities $1,210 $5,000 $ 2,300 $3,900 Campus rent Insurance Administrative expenses Course $ 2,930 $ 55 For example, administrative expenses should be $3,900 per month plus $41 per course plus $3 per student. The company's sales should average $870 per student. 5:41 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September were as follows: Actual $ 51,910 $ 11,000 $ 16,860 $ 1,840 $5,000 $ 2,440 $3,679 53 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.

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 Classroon supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost per Cost per Month Student $ 270 Revenue Instructor wages Classroom supplies Utilities $1,210 $5,000 $ 2,300 $3,900 Campus rent Insurance Administrative expenses Course $ 2,930 $ 55 For example, administrative expenses should be $3,900 per month plus $41 per course plus $3 per student. The company's sales should average $870 per student. 5:41 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September were as follows: Actual $ 51,910 $ 11,000 $ 16,860 $ 1,840 $5,000 $ 2,440 $3,679 53 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.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 57P: Identifying Fixed, Variable, Mixed, and Step Costs Consider each of the following independent...
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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 Month $ 1,210 $5,000 $ 2,300 $ 3,900 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Cost per Course $ 2,930 $ 55 Cost per Student $ 41 $3 For example, administrative expenses should be $3,900 per month plus $41 per course plus $3 per student. The company's sales should average $870 per student. $ 270 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September were as follows: Actual $ 51,910 $ 11,000 $ 16,860 $ 1,840 $5,000 $ 2,440 $3,679 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 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 Month $ 1,210 $5,000 $ 2,300 $ 3,900 Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Cost per Course $ 2,930 $ 55 Cost per Student $ 41 $3 For example, administrative expenses should be $3,900 per month plus $41 per course plus $3 per student. The company's sales should average $870 per student. $ 270 The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September were as follows: Actual $ 51,910 $ 11,000 $ 16,860 $ 1,840 $5,000 $ 2,440 $3,679 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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