Managerial Accounting: E9-16 The Toque Cooking Academy runs short cooking courses

Managerial Accounting 
E9-16 
The Toque Cooking Academy 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 four courses in a month and have a total of 65 students enrolled in those four 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 270 
Utilities 1,210 65 
Campus rent 5,200 
Insurance 2,200     
Administrative expenses 3,600 44 5 

For example, administrative expenses should be $3,600 per month plus $44 per course plus $5 per student. The company’s sales should average $850 per student. 
The actual operating results for October appear below: 
Actual 
Revenue 52,350 
Instructor wages 11,040 
Classroom supplies 17,400 
Utilities 1,880 
Campus rent 5,200 
Insurance 2,340 
Administrative expenses 3,527 

Required: 
1. The Toque Cooking Academy expects to run four courses with a total of 65 students in October. Prepare the company’s planning budget for this level of activity. (Input all amounts as positive values.) 
2. The school actually ran four courses with a total of 63 students in October. Prepare the company’s flexible budget for this level of activity.(Input all amounts as positive values.) 
3. Calculate the spending variances for all expense items. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
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