The Toque Cooking Academy runs short cooking courses at itssmall campus. Management has identified two cost drivers that ituses in its budgeting and performance reportsâthe 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 companyâs 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 companyâs 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 companyâs 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 companyâs 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
The Toque Cooking Academy runs short cooking courses at itssmall campus. Management has identified two cost drivers that ituses in its budgeting and performance reportsâthe 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 companyâs 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 companyâs 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 companyâs 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 companyâs 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 |