The Toque Cooking Academy runs short cooking courses atits small campus. Management has identified two cost drivers thatit uses in its budgeting and performance reports�the number ofcourses and the total number of students. For example, the schoolmight run four courses in a month and have a total of 60 studentsenrolled in those four courses. Data concerning the company�scost formulas appear below:
Fixed Cost per Month Cost per Course Cost per
Student Instructor wages $2,910 Classroom supplies $290 Utilities $ 1,220 $60 Campus rent $ 4,600 Insurance $ 2,200 Administrative expenses $ 3,700 $43 $5
For example, administrative expenses should be $3,700 permonth plus $43 per course plus $5 per student. The companys salesshould average $880 per student.
Actual Revenue $ 49,900 Instructor wages $ 10,920 Classroom supplies $ 17,250 Utilities $ 1,870 Campus rent $ 4,600 Insurance $ 2,340 Administrative expenses $ 3,598
The actual operating results for October appearbelow:
1. The Toque Cooking Academy expects to runfour courses with a total of 60 students in October. Complete thecompanys planning budget for this level ofactivity.
2 The school actually ran four courses with a total of 58students in October. Complete the companys flexible budget for thislevel of activity.
3. Complete the flexible budget performance report thatshows both activity variances and revenue and spending variancesfor October.
The Toque Cooking Academy runs short cooking courses atits small campus. Management has identified two cost drivers thatit uses in its budgeting and performance reports�the number ofcourses and the total number of students. For example, the schoolmight run four courses in a month and have a total of 60 studentsenrolled in those four courses. Data concerning the company�scost formulas appear below:
| Fixed Cost per Month | Cost per Course | Cost per Student | ||
| Instructor wages | $2,910 | |||
| Classroom supplies | $290 | |||
| Utilities | $ | 1,220 | $60 | |
| Campus rent | $ | 4,600 | ||
| Insurance | $ | 2,200 | ||
| Administrative expenses | $ | 3,700 | $43 | $5 |
For example, administrative expenses should be $3,700 permonth plus $43 per course plus $5 per student. The companys salesshould average $880 per student.
| Actual | ||
| Revenue | $ | 49,900 |
| Instructor wages | $ | 10,920 |
| Classroom supplies | $ | 17,250 |
| Utilities | $ | 1,870 |
| Campus rent | $ | 4,600 |
| Insurance | $ | 2,340 |
| Administrative expenses | $ | 3,598 |
The actual operating results for October appearbelow:
1. The Toque Cooking Academy expects to runfour courses with a total of 60 students in October. Complete thecompanys planning budget for this level ofactivity.
2 The school actually ran four courses with a total of 58students in October. Complete the companys flexible budget for thislevel of activity.
3. Complete the flexible budget performance report thatshows both activity variances and revenue and spending variancesfor October.
Related questions
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 63 students enrolled inthose four courses. Data concerning the companyâs cost formulasappear below:
| Fixed Cost per Month | Cost perCourse | Cost per Student | ||||
| Instructor wages | $ 2,900 | |||||
| Classroom supplies | $ 280 | |||||
| Utilities | $ | 1,240 | $ 75 | |||
| Campus rent | $ | 4,800 | ||||
| Insurance | $ | 2,300 | ||||
| Administrative expenses | $ | 3,800 | $ 43 | $ 4 | ||
For example, administrative expenses should be $3,800 per monthplus $43 per course plus $4 per student. The companyâs sales shouldaverage $860 per student. |
| The actual operating resultsfor October appear below: |
| Actual | ||
| Revenue | $ | 51,280 |
| Instructor wages | $ | 10,880 |
| Classroom supplies | $ | 17,490 |
| Utilities | $ | 1,950 |
| Campus rent | $ | 4,800 |
| Insurance | $ | 2,440 |
| Administrative expenses | $ | 3,650 |
| Required: | |
| 1. | The Toque Cooking Academy expects to run four courses with atotal of 63 students in October. Prepare the companyâs planningbudget for this level of activity. (Input all amounts aspositive values.) |
| Toque Cooking Academy Planning Budget For the Month Ended October 31 | |
| Revenue | $ |
| Expenses: | |
| Instructor wages | |
| Classroom supplies | |
| Utilities | |
| Campus rent | |
| Insurance | |
| Administrative expenses | |
| Total expense | |
| Netoperating income | $ |
| 2. | The school actually ran four courses with a total of 61 studentsin October. Prepare the companyâs flexible budget for this level ofactivity. (Input all amounts as positivevalues.) |
| Toque Cooking Academy Flexible Budget For the Month Ended October 31 | |
| Revenue | $ |
| Expenses: | |
| Instructor wages | |
| Classroom supplies | |
| Utilities | |
| Campus rent | |
| Insurance | |
| Administrative expenses | |
| Total expense | |
| Netoperating income | $ |
| 3. | Calculate the spending variances for all expense items.(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).) |
| Toque Cooking Academy Revenue and Spending Variances. For the Month Ended October 31 | ||
| Revenue and SpendingVariances | ||
| Revenue | $ | (Click to select)UFNone |
| Expenses: | ||
| Instructor wages | $ | (Click to select)UFNone |
| Classroom supplies | (Click to select)UFNone | |
| Utilities | (Click to select)FUNone | |
| Campus rent | (Click to select)FUNone | |
| Insurance | (Click to select)FUNone | |
| Administrative expenses | (Click to select)FUNone | |
| Total expense | (Click to select)FUNone | |
| Netoperating income | $ | (Click to select)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 65 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 | $280 | |||||
| Utilities | $ | 1,220 | $70 | |||
| Campus rent | $ | 4,900 | ||||
| Insurance | $ | 2,300 | ||||
| Administrativeexpenses | $ | 4,000 | $42 | $7 | ||
For example, administrative expenses should be $4,000 per monthplus $42 per course plus $7 per student. The companyâs sales shouldaverage $860 per student. |
| The actual operating results forOctober appear below: |
| Actual | ||
| Revenue | $ | 53,000 |
| Instructorwages | $ | 10,960 |
| Classroomsupplies | $ | 18,050 |
| Utilities | $ | 1,910 |
| Campus rent | $ | 4,900 |
| Insurance | $ | 2,440 |
| Administrativeexpenses | $ | 4,049 |
| Required: |
| 1. | The Toque Cooking Academy expects to run four courses with atotal of 65 students in October. Complete the companyâs planningbudget for this level of activity.
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| 2. | The school actually ran four courses with a total of 63 studentsin October. Complete the companyâs flexible budget for this levelof activity. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 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 |
