M ch 9 Homework × New tab | ezto.mheducation.com/hm.tpx?-0.6379826575600531 1463

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M ch 9 Homework × New tab | ezto.mheducation.com/hm.tpx?-0.6379826575600531 1463861200940 The Gourmand Cooking School 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 two courses in a month and have a total of 65 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per per Month Course Student Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses $2,910 $280 S 1,240 $ 4,700 $ 2,300 80 3,800 $ 44 $ 5 For example, administrative expenses should be $3,800 per month plus $44 per course plus $5 per student. The company's sales should average $860 per student. The actual operating results for September appear below: Revenue Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 53,000 $ 10,920 $ 18,050 $ 1,970 $ 4,700 $ 2,440 $ 3,727 Required 1. The Gourmand Cooking School expects to run four courses with a total of 65 students in September Complete the company's planning budget for this level of activity Gourmand Cooking School Planning Budget 1:07 PM 5/21/2016 Search the web and Windows

Explanation / Answer

Flexible Budget Performance Report For the Month Ended October 31 Courses 4 4 4 Students 61 Revenue & 61 65 Actual Spending Flexible Activity Planning Results Variances Budget Variances Budget Revenue $53,000 $540 U $52,460 ($3,440) U $55,900 Expenses:      Instructor wages $10,920 ($720) F $11,640 $0 $11,640      Classroom 18,050 970 U 17,080 (1,120) F 18,200      Utilities 1,970 410 U 1,560 0 1,560      Campus rent 4,700 0 4,700 0 4,700      Insurance 2,440 140 U 2,300 0 2,300      Administratration 3,727 (554) F 4,281 (20) F 4,301 Total expense $41,807 $246 F $41,561 ($1,140) F $42,701 Net operating income $11,193 $294 U $10,899 ($2,300) U $13,199 $294 U ($2,300) U ($2,006) U ($2,006) U

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