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The Toque Cooking Academy runs short cooking courses at itssmall campus. Management has identified two cost drivers that ituses in its budgeting and performance reports—the number of coursesand the total number of students. For example, the school might runfour courses in a month and have a total of 64 students enrolled inthose four courses. Data concerning the company’s cost formulasappear below:

Fixed Cost per Month Cost per Course Cost per
Student
Instructorwages $2,920
Classroomsupplies $300
Utilities $ 1,220 $85
Campus rent $ 5,100
Insurance $ 2,400
Administrativeexpenses $ 3,900 $41 $3

For example, administrative expenses should be $3,900 per monthplus $41 per course plus $3 per student. The company’s sales shouldaverage $900 per student.

The actual operating results forOctober appear below:
Actual
Revenue $ 54,700
Instructorwages $ 10,960
Classroomsupplies $ 19,050
Utilities $ 1,970
Campus rent $ 5,100
Insurance $ 2,540
Administrativeexpenses $ 3,682
Required:
1.

The Toque Cooking Academy expects to run four courses with atotal of 64 students in October. Complete the company’s planningbudget for this level of activity. (Inputall amounts as positive values. Omit the "$" sign in yourresponse.)

Toque Cooking Academy
Planning Budget
For the Month Ended October 31
Revenue $
Expenses:
Instructor wages
Classroom supplies
Utilities
Campusrent
Insurance
Administrative expenses
Total expense
Net operatingincome $
2.

The school actually ran four courses with a total of 62 studentsin October. Complete the company’s flexible budget for this levelof activity.(Input all amounts as positive values. Omit the"$" sign in your response.)

Toque Cooking Academy
Flexible Budget
For the Month Ended October 31
Revenue $
Expenses:
Instructor wages
Classroom supplies
Utilities
Campusrent
Insurance
Administrative expenses
Total expense
Net operatingincome $
3.

Complete the flexible budget performance report that shows bothactivity variances and revenue and spending variances for October.(Input all amounts as positive values. Leave no cells blank- be certain to enter "0" wherever required. Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zero variance). Omit the "$" signin your response.)

Toque Cooking Academy
Flexible Budget Performance Report
For the Month Ended October 31
Activity Variances Revenue and Spending Variances
Revenue $ (Click toselect)UFNone $ (Click toselect)UFNone
Expenses:
Instructor wages (Click toselect)FUNone (Click toselect)UFNone
Classroom supplies (Click toselect)FUNone (Click toselect)NoneUF
Utilities (Click toselect)FUNone (Click toselect)FUNone
Campus rent (Click toselect)FUNone (Click toselect)FUNone
Insurance (Click toselect)FUNone (Click toselect)FUNone
Administrative expenses (Click toselect)FUNone (Click toselect)FUNone
Total expense (Click toselect)FUNone (Click toselect)FUNone
Net operatingincome $ (Click toselect)FUNone $ (Click toselect)UFNone

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Jean Keeling
Jean KeelingLv2
28 Sep 2019

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