Question

The Gourmand Cooking School runs short cooking courses at ns smail campus Management has identifed 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 61 students enrolled in those wo courses. Data concerning the company's cost formulas appear below Fixed Cosl per Cost per Course S 2.920 Cost per Student Month Instructor wages Classroom supples Usites Campus rent Insurance s 260 S 1250 $5,000 S 2,400 S 3,700 S 50 Adminisrative espenses 43 S 3 For example, administrative expenses should be $3.700 per month plus $43 per course plus $3 per student. The company's sales should average $870 per student The actual operating results for September appear below Revenue Instructor wages Classroom supplies Utities Campus rent Insurance Administrative expenses Actual S 50.170 $ 10.060 $ 15.710 $ 1,860 5,000 S 2,540 S 3,481

Answer 1

Planning Budget is as prepared below:

Gourmand Cooking School
Planning Budget
For the Month Ended September 30
Revenue (870*61)	53,070
Expenses:
Instructor wages (2,920*2)	5,840
Classroom supplies (260*61)	15,860
Utilities (1,250+50*2)	1,350
Campus rent	5,000
Insurance	2,400
Administrative expenses (3,700+43*2+3*61)	3,969
Total expense	34,419
Net operating income	18,651