ACCOUNTING Chapter 8 HW Question 5 (of 8) value 1.00 points The Toque Cooking Ac
ID: 2479096 • Letter: A
Question
ACCOUNTING Chapter 8 HW Question 5 (of 8) value 1.00 points The Toque Cooking Academy runs short cooking courses at its small campus. Management has identified two c number of students. For example, the school might run four courses in a month and have a total of 65 below cost drivers that it uses in its budgeting and performance reports-the number of courses and the total students enrolled in those four courses. Data conceming the company's cost formulas appear Fixed Cost per Month Cost per Course $ 2,910 Cost per Student Instructor wages Classroom supplies Utilities Campus rent Insurance $ 300 1.200 S 55 $ 5,000 2.200 Administrative expenses $3.900 45 6 For example, administrative expenses should be $3.900 per month plus $45 per course plus $6 per student. The company's sales should average $890 per student The actual operating results for October appear below evenue Instructor wages Classroom supplies Utilities Actual $ 54 950 $ 10.920 5 19 350 S 1,830 S 5.000 Ask me anythingExplanation / Answer
Answer 5
Classroom supplies (300*65)
Campus rent
Insurance
Administrative expenses 3900+(45*4)+(6*65)
Total expense (B)
Net operating income (A-B)
Classroom supplies (300*63)
Campus rent
Insurance
Administrative expenses 3900+(45*4)+(6*63)
Total expense (B)
Net operating income (A-B)
Classroom supplies
Campus rent
Insurance
Administrative expenses
Total expense
Net operating income
Answer 6
Answer 7
Wages 4800+(5300*1.10)
Rent
Insurance
Total expense (B)
Net operating income (A-B)
1 Planning Budget Revenue (A) (890*65) 57850 Expenses : Instructor wages (2910*4) 11640Classroom supplies (300*65)
19500 Utilities 1200+(55*4) 1420Campus rent
5000Insurance
2200Administrative expenses 3900+(45*4)+(6*65)
4470Total expense (B)
44230Net operating income (A-B)
13620 2 Flexible Budget Revenue (A) (890*63) 56070 Expenses : Instructor wages (2910*4) 11640Classroom supplies (300*63)
18900 Utilities 1200+(55*4) 1420Campus rent
5000Insurance
2200Administrative expenses 3900+(45*4)+(6*63)
4458Total expense (B)
43618Net operating income (A-B)
12452 3 Flexible Budget Flexible Budget (A) Actual Budget ( B) Spending Variance (Difference) Revenue 56070 54950 1120 Unfavourable Expenses : Instructor wages 11640 10920 720 FavourableClassroom supplies
18900 19350 450 Unfavourable Utilities 1420 1830 410 UnfavourableCampus rent
5000 5000 0 NoneInsurance
2200 2340 140 UnfavourableAdministrative expenses
4458 3896 562 FavourableTotal expense
43618 43336 282 FavourableNet operating income
12452 11614 838 Unfavourable