Domestic The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses forbudgeting purposes-the number of courses and the total number of students. For example, the school might run two courses in amonth and have a total of 50 students enrolled in those two courses. Data concerning the company's cost formulas appear below:FixedCost per Cost per Cost perInstructor wagesClassroom suppliesUtilitiesCampus rentInsuranceAdministrative expensesMonthCourse$ 3,080Student$ 260$ 870$ 4,200$ 1,890$ 3,270$ 130$ 15$ 4For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company's salesshould average $800 per student.The company planned to run three courses with a total of 45 students; however, it actually ran three courses with a total of only 42students. The actual operating results for September were as follows:Actual$ 32,400$ 9,080RevenueInstructor wagesClassroom suppliesUtilitiesCampus rentInsuranceAdministrative expensesRequired:$ 8,540$ 1,530$ 4,200$ 1,890$ 3,790Prepare 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., zerovariance). Input all amounts as positive values.

The flexible budget can be changed on the basis of changes in the number of units or other…

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost driv 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 50 students enrolled in those two courses. Data concerning the company's cost formulas appear below:

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost driv 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 50 students enrolled in those two courses. Data concerning the company's cost formulas appear below:

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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