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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 60 students enrolled in those four courses. Data concerning the company�s cost formulas appear below:
For example, administrative expenses should be $3,700 per month plus $43 per course plus $5 per student. The companys sales should average $880 per student.
The actual operating results for October appear below:
1.The Toque Cooking Academy expects to run four courses with a total of 60 students in October. Complete the companys planning budget for this level of activity.
2.The school actually ran four courses with a total of 58 students in October. Complete the companys flexible budget for this level of activity.
3.Complete the flexible budget performance report that shows both activity variances and revenue and spending variances for October.
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