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 61 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:
| Fixed Cost per Month | Cost per Course | Cost per Student |
|||||
| Instructor wages | $ | 2,980 | |||||
| Classroom supplies | $ | 290 | |||||
| Utilities | $ | 1,240 | $ | 50 | |||
| Campus rent | $ | 4,800 | |||||
| Insurance | $ | 2,000 | |||||
| Administrative expenses | $ | 3,600 | $ | 46 | $ | 7 | |
For example, administrative expenses should be $3,600 per month plus $46 per course plus $7 per student. The company’s sales should average $890 per student.
The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September appear below:
| Actual | ||
| Revenue | $ | 51,390 |
| Instructor wages | $ | 11,200 |
| Classroom supplies | $ | 17,540 |
| Utilities | $ | 1,850 |
| Campus rent | $ | 4,800 |
| Insurance | $ | 2,140 |
| Administrative expenses | $ | 3,637 |
Required:
1. Prepare the company’s planning budget for September.
2. Prepare the company’s flexible budget for September.
3. Calculate the revenue and spending variances for September.
Gourmand Cooking School
Planning Budget
For the Month Ended Sept 30
In: Accounting
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 64 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:
| Fixed Cost per Month | Cost per Course | Cost per Student |
|||||||
| Instructor wages | $ | 2,900 | |||||||
| Classroom supplies | $ | 270 | |||||||
| Utilities | $ | 1,240 | $ | 75 | |||||
| Campus rent | $ | 5,000 | |||||||
| Insurance | $ | 2,000 | |||||||
| Administrative expenses | $ | 3,700 | $ | 45 | $ | 5 | |||
For example, administrative expenses should be $3,700 per month plus $45 per course plus $5 per student. The company’s sales should average $890 per student.
The actual operating results for September appear below:
| Actual | |||
| Revenue | $ | 54,060 | |
| Instructor wages | $ | 10,880 | |
| Classroom supplies | $ | 17,130 | |
| Utilities | $ | 1,950 | |
| Campus rent | $ | 5,000 | |
| Insurance | $ | 2,140 | |
| Administrative expenses | $ | 3,626 | |
Required:
1. The Gourmand Cooking School expects to run four courses with a total of 64 students in September. Complete the company’s planning budget for this level of activity.
2. The school actually ran four courses with a total of 56 students in September. Complete the company’s flexible budget for this level of activity.
3. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for September. (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.)
In: Accounting
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:
| Fixed Cost per Month | Cost per Course | Cost per Student |
|||||
| Instructor wages | $ | 2,940 | |||||
| Classroom supplies | $ | 290 | |||||
| Utilities | $ | 1,250 | $ | 60 | |||
| Campus rent | $ | 5,200 | |||||
| Insurance | $ | 2,200 | |||||
| Administrative expenses | $ | 3,600 | $ | 42 | $ | 4 | |
For example, administrative expenses should be $3,600 per month plus $42 per course plus $4 per student. The company’s sales should average $880 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 58 students. The actual operating results for September appear below:
| Actual | ||
| Revenue | $ | 53,420 |
| Instructor wages | $ | 11,040 |
| Classroom supplies | $ | 18,410 |
| Utilities | $ | 1,900 |
| Campus rent | $ | 5,200 |
| Insurance | $ | 2,340 |
| Administrative expenses | $ | 3,450 |
Required:
Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September.
In: Accounting
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 60 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:
| Fixed Cost per Month | Cost per Course | Cost per Student |
|||||
| Instructor wages | $ | 2,900 | |||||
| Classroom supplies | $ | 290 | |||||
| Utilities | $ | 1,230 | $ | 70 | |||
| Campus rent | $ | 5,000 | |||||
| Insurance | $ | 2,400 | |||||
| Administrative expenses | $ | 4,000 | $ | 45 | $ | 4 | |
For example, administrative expenses should be $4,000 per month plus $45 per course plus $4 per student. The company’s sales should average $890 per student.
The company planned to run four courses with a total of 60 students; however, it actually ran four courses with a total of only 50 students. The actual operating results for September appear below:
| Actual | ||
| Revenue | $ | 50,500 |
| Instructor wages | $ | 10,880 |
| Classroom supplies | $ | 17,250 |
| Utilities | $ | 1,920 |
| Campus rent | $ | 5,000 |
| Insurance | $ | 2,540 |
| Administrative expenses | $ | 3,846 |
Required:
Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (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.)
In: Accounting
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:
| Fixed Cost per Month | Cost per Course | Cost per Student |
|||||
| Instructor wages | $ | 2,900 | |||||
| Classroom supplies | $ | 260 | |||||
| Utilities | $ | 1,250 | $ | 55 | |||
| Campus rent | $ | 5,200 | |||||
| Insurance | $ | 2,300 | |||||
| Administrative expenses | $ | 3,600 | $ | 43 | $ | 4 | |
For example, administrative expenses should be $3,600 per month plus $43 per course plus $4 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 56 students. The actual operating results for September appear below:
| Actual | ||
| Revenue | $ | 52,780 |
| Instructor wages | $ | 10,880 |
| Classroom supplies | $ | 16,490 |
| Utilities | $ | 1,880 |
| Campus rent | $ | 5,200 |
| Insurance | $ | 2,440 |
| Administrative expenses | $ | 3,454 |
Required:
1. Prepare the company’s planning budget for September.
Prepare the company’s planning budget for September.
2. Prepare the company’s flexible budget for September. |
3. Calculate the revenue and spending variances for September.
In: Accounting
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:
| Fixed Cost per Month | Cost per Course | Cost per Student |
|||||
| Instructor wages | $ | 2,910 | |||||
| Classroom supplies | $ | 310 | |||||
| Utilities | $ | 1,210 | $ | 85 | |||
| Campus rent | $ | 5,200 | |||||
| Insurance | $ | 2,200 | |||||
| Administrative expenses | $ | 3,800 | $ | 41 | $ | 4 | |
For example, administrative expenses should be $3,800 per month plus $41 per course plus $4 per student. The company’s sales should average $890 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 60 students. The actual operating results for September appear below:
| Actual | ||
| Revenue | $ | 54,060 |
| Instructor wages | $ | 10,920 |
| Classroom supplies | $ | 19,690 |
| Utilities | $ | 1,960 |
| Campus rent | $ | 5,200 |
| Insurance | $ | 2,340 |
| Administrative expenses | $ | 3,646 |
Required:
1. Prepare the company’s planning budget for September.
2. Prepare the company’s flexible budget for September.
3. Calculate the revenue and spending variances for September.
In: Accounting
|
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 62 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: |
| Fixed Cost per Month | Cost per Course |
Cost per Student |
||||
| Instructor wages | $ | 2,910 | ||||
| Classroom supplies | $ | 290 | ||||
| Utilities | $ | 1,220 | $ | 75 | ||
| Campus rent | $ | 4,600 | ||||
| Insurance | $ | 2,300 | ||||
| Administrative expenses | $ | 3,500 | $ | 43 | $ | 7 |
|
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|
For example, administrative expenses should be $3,500 per month plus $43 per course plus $7 per student. The company’s sales should average $880 per student. |
| The actual operating results for September appear below: |
| Actual | ||
| Revenue | $ | 51,660 |
| Instructor wages | $ | 10,920 |
| Classroom supplies | $ | 17,830 |
| Utilities | $ | 1,930 |
| Campus rent | $ | 4,600 |
| Insurance | $ | 2,440 |
| Administrative expenses | $ | 3,532 |
|
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| Required: | |
| 1. |
The Gourmand Cooking School expects to run four courses with a total of 62 students in September. Complete the company’s planning budget for this level of activity. |
| 2. |
The school actually ran four courses with a total of 58 students in September. Complete the company’s flexible budget for this level of activity. |
| 3. |
Calculate the revenue and spending variances for September. (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.) |
In: Accounting
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 63 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:
| Fixed Cost per Month | Cost per Course | Cost per Student |
|||||
| Instructor wages | $ | 2,930 | |||||
| Classroom supplies | $ | 290 | |||||
| Utilities | $ | 1,210 | $ | 85 | |||
| Campus rent | $ | 4,900 | |||||
| Insurance | $ | 2,200 | |||||
| Administrative expenses | $ | 3,600 | $ | 40 | $ | 3 | |
For example, administrative expenses should be $3,600 per month plus $40 per course plus $3 per student. The company’s sales should average $880 per student.
The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 59 students. The actual operating results for September were as follows:
| Actual | ||
| Revenue | $ | 52,540 |
| Instructor wages | $ | 11,000 |
| Classroom supplies | $ | 18,120 |
| Utilities | $ | 1,960 |
| Campus rent | $ | 4,900 |
| Insurance | $ | 2,340 |
| Administrative expenses | $ | 3,375 |
Required:
Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (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.)
In: Accounting
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 65 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:
| Fixed Cost per Month | Cost per Course | Cost per Student |
|||||
| Instructor wages | $ | 2,950 | |||||
| Classroom supplies | $ | 280 | |||||
| Utilities | $ | 1,200 | $ | 65 | |||
| Campus rent | $ | 4,500 | |||||
| Insurance | $ | 2,000 | |||||
| Administrative expenses | $ | 3,600 | $ | 45 | $ | 6 | |
For example, administrative expenses should be $3,600 per month plus $45 per course plus $6 per student. The company’s sales should average $890 per student.
The company planned to run four courses with a total of 65 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September appear below:
| Actual | ||
| Revenue | $ | 54,950 |
| Instructor wages | $ | 11,080 |
| Classroom supplies | $ | 18,050 |
| Utilities | $ | 1,870 |
| Campus rent | $ | 4,500 |
| Insurance | $ | 2,140 |
| Administrative expenses | $ | 3,596 |
Required:
1. Prepare the company’s planning budget for September.
2. Prepare the company’s flexible budget for September.
3. Calculate the revenue and spending variances for September.
In: Accounting
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 63 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:
Fixed Cost per Month Cost per Course Cost per
Student
Instructor wages $ 2,980
Classroom supplies $ 300
Utilities $ 1,210 $ 85
Campus rent $ 5,000
Insurance $ 2,300
Administrative expenses $ 3,900 $ 41 $ 4
For example, administrative expenses should be $3,900 per month plus $41 per course plus $4 per student. The company’s sales should average $850 per student.
The actual operating results for September appear below:
Actual
Revenue $ 50,650
Instructor wages $ 11,200
Classroom supplies $ 18,750
Utilities $ 1,960
Campus rent $ 5,000
Insurance $ 2,440
Administrative expenses $ 3,742
Required:
1. The Gourmand Cooking School expects to run four courses with a total of 63 students in September. Complete the company’s planning budget for this level of activity.
2. The school actually ran four courses with a total of 59 students in September. Complete the company’s flexible budget for this level of activity.
3. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for September. (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.)
In: Accounting