The Toque Cooking Academy runs short cooking courses at its small campus. Manage

Question

The Toque Cooking Academy runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run four courses in a month and have a total of 65 students enrolled in those four courses. Data concerning the company’s cost formulas appear below:

   

  

For example, administrative expenses should be $4,000 per month plus $42 per course plus $7 per student. The company’s sales should average $860 per student.

   

     

     

The Toque Cooking Academy expects to run four courses with a total of 65 students in October. Complete the company’s planning budget for this level of activity.

      

The school actually ran four courses with a total of 63 students in October. Complete the company’s flexible budget for this level of activity.

Toque Cooking Academy

Planning Budget

For the Month Ended October 31

Revenue

Expenses:

Instructor wages

Classroom supplies

Utilities

Campus rent

Insurance

Administrativeexpenses

Total expense

Net operating income

Complete the flexible budget performance report that shows both activity variances and revenue and spending variances for October. (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 Toque Cooking Academy runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run four courses in a month and have a total of 65 students enrolled in those four courses. Data concerning the company’s cost formulas appear below:

Explanation / Answer

1 & 2nd part

Note ; please ask other parts separately

Particulars Budgeted Flexible Actual No. Price Amount No. Price Amount Amount Sales revenue 65 students 860 55,900 63 students 860 54,180 53,000 Instuctor wages 4 Courses 2,920 11,680 4 courses 2,920 11,680 10,960 Classroom Supplies 65 students 280 18,200 63 students 280 17,640 18,050 utilities 1,910 Fixed 1,220 1,220 variable 4 courses 70 280 4 courses 70 Campus Rent 4,900 4,900 4,900 Insurance 2,300 2,300 2,440 Adminisitrative expenses Fixed 4,000 4,000 4,049 variable 4 Courses 42 168 4 Courses 42 168 Variable 65 students 7 455 63 students 7 441 Net income 12,697 11,831 10,691

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.