Please help 6 The Gourmand Cooking School runs short cooking courses at Its smal
ID: 2531284 • Letter: P
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Please help
6 The Gourmand Cooking School runs short cooking courses at Its small campus. Management has identitied two cost drivers it uses in ts 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 points Fixed Cost Cost Cost per Month Course Student $2,920 Instructor wages Classroom supplies Utilities Canpus rent Insurance Adrministrative $270 $1,23085 $4,800 $2,200 ReferencE expenses $3,60042 5 For example, administrative expenses should be $3,600 per month plus $42 per course plus $5 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 61 students; however, It actually ran four courses with a total of only 53 students. The actual operating results for September appear below $49,560 $10, 960 Instructor wages Classroom supplies $16,320 utilities Canpus rent Insurance Adninistrative $ 1,98 $ 4, 800 $ 2,340 $ 3,499 Prepare a fiexible budget performance report that shows both revenue and spending varlances and activity varlances for September. (Indicate the effect of each variance by selecting "F. for favorable, "U" for unfavorable, and "None" for no effect (.e, zero variance). Input all amounts as positive values.) Flexible Budget Performance Report For the Month Ended September 30 Actual Flexible Bud Bu Courses Students Revenue 49,560 Instructor wages Classroom Utities 10,960 16,320 1,980 800 2,340 rent Insurance Administrative 3,499 Total Net operating incomeExplanation / Answer
Answer 1. Gourmand Coooking School Flexible Budget Performance Report For the Month Ended Sep 30 Actual Results Spending Variance Flexible Budget Actual Variance Planning Budget No. of Courses 4 4 4 No. of Students 53 53 61 Revenue 49,560 3,980 F 45,580 6,880 U 52,460 (53 Nos X $860) (61 Nos X $860) Less: Expenses Instructor Wages 10,960 720 F 11,680 - F 11,680 ($2,920 X 4 Courses) ($2,920 X 4 Courses) Classroom Supplies 16,320 2,010 U 14,310 2,160 F 16,470 ($270 X 53 Nos) ($270 X 61 Nos) Utilities 1,980 410 U 1,570 - F 1,570 ($1,230 + $85 X 4 Courses) ($1,230 + $85 X 4 Courses) Campus Rent 4,800 - 4,800 - 4,800 Insurance 2,340 140 U 2,200 - F 2,200 Administrative Expenses 3,499 534 F 4,033 40 F 4,073 ($3,600 + $42 X 4 Courses + $5 X 53 Nos ($3,600 + $42 X 4 Courses + $5 X 61 Nos Total Expenses 39,899 1,306 U 38,593 2,200 F 40,793 Operating Income 9,661 2,674 F 6,987 4,680 U 11,667 As per Chegg Guidelines, you can ask one question having four subparts. For other question, please ask it again