Reference no: EM13925765

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			$	2,960
Classroom supplies					$	280
Utilities	$	1,250	$	55
Campus rent	$	4,700
Insurance	$	2,000
Administrative expenses	$	3,700	$	41	$	5

For example, administrative expenses should be $3,700 per month plus $41 per course plus $5 per student. The company's sales should average $890 per student.

The actual operating results for September appear below:

Revenue	$	54,060
Instructor wages	$	11,120
Classroom supplies	$	17,770
Utilities	$	1,880
Campus rent	$	4,700
Insurance	$	2,140
Administrative expenses	$	3,610

 

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 58 students in September. Complete the company's flexible budget for this level of activity.