5 Exercise 9-6 (Static) Working with More Than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6] 10 points The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for 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: eBook Instructor wages Print Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month Cost per Cost per Course Student $ 3,080 $ 260 $ 870 $ 130 $ 4,200 $ 1,890 $ 3,270 $ 15 $ 4 References For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company's sales should 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 42 students. The actual operating results for September were as follows: Revenue Instructor wages Actual $ 32,400 $ 9,080 Classroom supplies Utilities Campus rent Insurance Administrative expenses Required: $ 8,540 $ 1,530 $ 4,200 $ 1,890 $ 3,790 Prepare 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 (l.e., zero varlance). Input all amounts as positive values. Courses Students Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Planning Actual Results Budget Budget 3 42 $ 32,400 Revenue Expenses: Instructor wages 9,080 Classroom supplies 8,540 Utilities 1,530 Campus rent 4,200 Insurance 1,890 Administrative expenses 3,790 Total expenses Net operating income 29,030 $ 3,370
5 Exercise 9-6 (Static) Working with More Than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6] 10 points The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for 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: eBook Instructor wages Print Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Month Cost per Cost per Course Student $ 3,080 $ 260 $ 870 $ 130 $ 4,200 $ 1,890 $ 3,270 $ 15 $ 4 References For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company's sales should 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 42 students. The actual operating results for September were as follows: Revenue Instructor wages Actual $ 32,400 $ 9,080 Classroom supplies Utilities Campus rent Insurance Administrative expenses Required: $ 8,540 $ 1,530 $ 4,200 $ 1,890 $ 3,790 Prepare 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 (l.e., zero varlance). Input all amounts as positive values. Courses Students Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Planning Actual Results Budget Budget 3 42 $ 32,400 Revenue Expenses: Instructor wages 9,080 Classroom supplies 8,540 Utilities 1,530 Campus rent 4,200 Insurance 1,890 Administrative expenses 3,790 Total expenses Net operating income 29,030 $ 3,370
Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Problem 12E: Nutterco, Inc., produces two types of nut butter: peanut butter and cashew butter. Of the two,...
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![5
Exercise 9-6 (Static) Working with More Than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6]
10
points
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for
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:
eBook
Instructor wages
Print
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Fixed
Cost per
Month
Cost per Cost per
Course
Student
$ 3,080
$ 260
$ 870
$ 130
$ 4,200
$ 1,890
$ 3,270
$ 15
$ 4
References
For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company's sales
should 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 42
students. The actual operating results for September were as follows:
Revenue
Instructor wages
Actual
$ 32,400
$ 9,080
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Required:
$ 8,540
$ 1,530
$ 4,200
$ 1,890
$ 3,790
Prepare 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 (l.e., zero
varlance). Input all amounts as positive values.
Courses
Students
Gourmand Cooking School
Flexible Budget Performance Report
For the Month Ended September 30
Flexible
Planning
Actual Results
Budget
Budget
3
42
$
32,400
Revenue
Expenses:
Instructor wages
9,080
Classroom supplies
8,540
Utilities
1,530
Campus rent
4,200
Insurance
1,890
Administrative expenses
3,790
Total expenses
Net operating income
29,030
$
3,370](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf8eacdb-488d-4676-ac8e-295d95a452a9%2F9ef8d26d-fcd5-43e4-81bc-e8dd334a8f47%2F7qt3efj_processed.png&w=3840&q=75)
Transcribed Image Text:5
Exercise 9-6 (Static) Working with More Than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6]
10
points
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for
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:
eBook
Instructor wages
Print
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Fixed
Cost per
Month
Cost per Cost per
Course
Student
$ 3,080
$ 260
$ 870
$ 130
$ 4,200
$ 1,890
$ 3,270
$ 15
$ 4
References
For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company's sales
should 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 42
students. The actual operating results for September were as follows:
Revenue
Instructor wages
Actual
$ 32,400
$ 9,080
Classroom supplies
Utilities
Campus rent
Insurance
Administrative expenses
Required:
$ 8,540
$ 1,530
$ 4,200
$ 1,890
$ 3,790
Prepare 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 (l.e., zero
varlance). Input all amounts as positive values.
Courses
Students
Gourmand Cooking School
Flexible Budget Performance Report
For the Month Ended September 30
Flexible
Planning
Actual Results
Budget
Budget
3
42
$
32,400
Revenue
Expenses:
Instructor wages
9,080
Classroom supplies
8,540
Utilities
1,530
Campus rent
4,200
Insurance
1,890
Administrative expenses
3,790
Total expenses
Net operating income
29,030
$
3,370
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