FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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9 HW i
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mces
Instructor wages
Classroom supplies
Utilities
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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 62 students enrolled in those two courses. Data concerning the company's cost formulas
appear below:
Compus rent
Insurance
Administrative expenses
Revenue
Instructor wages
Classroom supplies
Utilities
Fixed
Cost per
Month
$ 1,210
$5,200
$ 2,300
$ 3,800
Compus rent
Insurance
Administrative expenses
Cost per
Course
$ 2,930
$ 70
$ 44
For example, administrative expenses should be $3,800 per month plus $44 per course plus $5 per student. The company's sales
should average $870 per student.
Actual
$ 51,040
$ 11,000.
$ 18,450
$1,900
$ 5,200
$ 2,440
$ 3,712
cost per
Student
$ 300
The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 58
students. The actual operating results for September were as follows:
$5
Anitural Results
Seved
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.
Gourmand Cooking School
Flexible Budget Performance Report
For the Month Ended September 30
Flexible
Planning
Badnat
expand button
Transcribed Image Text:9 HW i k ■ K http:// mces Instructor wages Classroom supplies Utilities /ext/map/indexhtml?_con conexternal browser 08launchUrl=https%253A%252F%252Fims.mheducation.com%252Fmghmiddleware%252Fme 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 62 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Compus rent Insurance Administrative expenses Revenue Instructor wages Classroom supplies Utilities Fixed Cost per Month $ 1,210 $5,200 $ 2,300 $ 3,800 Compus rent Insurance Administrative expenses Cost per Course $ 2,930 $ 70 $ 44 For example, administrative expenses should be $3,800 per month plus $44 per course plus $5 per student. The company's sales should average $870 per student. Actual $ 51,040 $ 11,000. $ 18,450 $1,900 $ 5,200 $ 2,440 $ 3,712 cost per Student $ 300 The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 58 students. The actual operating results for September were as follows: $5 Anitural Results Seved 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. Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Planning Badnat
ces
The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 58
students. The actual operating results for September were as follows:
Revenue
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
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.
Courses
Students
Revenue
Expenses
Instructor wages
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Total expense
Net operating income
Actual
$ 51,040
$ 11,000
$ 18,450
$ 1,900
$ 5,200
$ 2,440
$ 3,712
$
Actual Results
S
Gourmand Cooking School
Flexible Budget Performance Report
For the Month Ended September 30
4
58
51,040
11,000
18,450
1,900
5.200
2,440
3.712
42.702
8,338
Flexible
Budget
Planning
Budget
expand button
Transcribed Image Text:ces The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 58 students. The actual operating results for September were as follows: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses 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. Courses Students Revenue Expenses Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Actual $ 51,040 $ 11,000 $ 18,450 $ 1,900 $ 5,200 $ 2,440 $ 3,712 $ Actual Results S Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 4 58 51,040 11,000 18,450 1,900 5.200 2,440 3.712 42.702 8,338 Flexible Budget Planning Budget
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