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The Gourmand Cooking School runs short cooking courses at its small campus. Management has budgeting purposes-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 Fixed Cost per Cost per Cost per Month Course Student $ 2,940 $ 290 Utilities $ 1,220 $ 70 Campus rent $ 4,600 Insurance $ 2,100 Administrative expenses $ 3,700 $ 44 $ 4 For example, administrative expenses should be $3,700 per month plus $44 per course plus $4 per student. The company's sales should average $850 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: Revenue Instructor wages Classroom supplies Actual $ 50,650 $ 11,040 $ 18,120 Utilities $ 1,910 Campus rent $ 4,600 Insurance $ 2,240 Administrative expenses $ 3,554 Required: Prepare a flexible budget performance report 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 budgeting purposes-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 Fixed Cost per Cost per Cost per Month Course Student $ 2,940 $ 290 Utilities $ 1,220 $ 70 Campus rent $ 4,600 Insurance $ 2,100 Administrative expenses $ 3,700 $ 44 $ 4 For example, administrative expenses should be $3,700 per month plus $44 per course plus $4 per student. The company's sales should average $850 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: Revenue Instructor wages Classroom supplies Actual $ 50,650 $ 11,040 $ 18,120 Utilities $ 1,910 Campus rent $ 4,600 Insurance $ 2,240 Administrative expenses $ 3,554 Required: Prepare a flexible budget performance report 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
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4BE: Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and...
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The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes-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: Fixed Cost per Cost per Cost per Month Instructor wages Classroom supplies Course $ 2,940 Student $ 290 Utilities $ 1,220 $ 70 Campus rent $ 4,600 Insurance $ 2,100 Administrative expenses $ 3,700 $ 44 $ 4 For example, administrative expenses should be $3,700 per month plus $44 per course plus $4 per student. The company's sales should average $850 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: Actual $ 50,650 Revenue Instructor wages Classroom supplies Utilities Campus rent $ 11,040 $ 18,120 $ 1,910 $ 4,600 Insurance $ 2,240 Administrative expenses $ 3,554 Required: Prepare a flexible budget performance report 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 for budgeting purposes-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: Fixed Cost per Cost per Cost per Month Instructor wages Classroom supplies Course $ 2,940 Student $ 290 Utilities $ 1,220 $ 70 Campus rent $ 4,600 Insurance $ 2,100 Administrative expenses $ 3,700 $ 44 $ 4 For example, administrative expenses should be $3,700 per month plus $44 per course plus $4 per student. The company's sales should average $850 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: Actual $ 50,650 Revenue Instructor wages Classroom supplies Utilities Campus rent $ 11,040 $ 18,120 $ 1,910 $ 4,600 Insurance $ 2,240 Administrative expenses $ 3,554 Required: Prepare a flexible budget performance report 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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