mework #8-Chapter #9 0 Help Save & Exit Submlt Saved Check my work 7 The Gourman

Question

mework #8-Chapter #9 0 Help Save & Exit Submlt Saved Check my work 7 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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: 32 Fixed ints Cost per Cost per Cost per rse Student Month Cou s 2,920 eBook Print eferences Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses s 280 $1,240 60 $ 4,600 $ 2,300 s 3,600 45 For example, administrative expenses should be $3,600 per month plus $45 per course plus $5 per student. The company's sales should average $870 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September appear below: Actual 52,780 Revenue aw ?Prev 7of 7 Next

Explanation / Answer

Actual Revenue and spending variances Flexible budget Activity variances Planning budget Courses 4 4 4 Students 54 54 64 Revenue 52780 5800 F 46980 8700 U 55680 Expenses: Instructor wages 10960 720 F 11680 0 None 11680 Classroom Supplies 17770 2650 U 15120 2800 F 17920 Utilities 1890 410 U 1480 0 None 1480 Campus rent 4600 0 None 4600 0 None 4600 Insurance 2440 140 U 2300 0 None 2300 Administrative expenses 3526 524 F 4050 50 F 4100 Total expense 41186 1956 U 39230 2850 F 42080 Net operating income 11594 3844 F 7750 5850 U 13600

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

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