two courses in a month and have a total of 62 students enrol

two courses in a month and have a total of 62 students enrolled in those two c appear below ourses. Data conc erning the company\'s cost formulas Month Course supplies s 270 utilities Campus rent $ 4,600 s 2,3e0 $3,900 41 For example, administrative expenses should be $3.900 per month plus $41 per cour per month plus $41 per course plus $6 per student. The company\'s sales The company planned to run four courses with a total of 62 students students. The actual operating results for appear below supplies 16,590 1,80 s 2,440 $ 3,862 Prepare a flexible budget report that shows both revenue and spending vaniances and activity variances for September Flexible Budget Report Flexible Planning Actual Results

Solution

Actual Revenue and spending variances Flexible budget Activity variances Planning budget Courses 4 4 4 Students 56 56 62 Revenue 52280 2440 F 49840 5340 U 55180 Expenses: Instructor wages 10880 720 F 11600 0 None 11600 Classroom supplies 16590 1470 U 15120 1620 F 16740 Utilities 1830 410 U 1420 0 None 1420 Campus rent 4600 0 None 4600 0 None 4600 Insurance 2440 140 U 2300 0 None 2300 Administrative expenses 3862 538 F 4400 36 F 4436 Total expenses 40202 762 U 39440 1656 F 41096 Net operating income 12078 1678 F 10400 3684 U 14084