Answer
Actual Results |
Spending Variances |
Flexible Budget |
Activity Variances |
Planning Budget |
|||
Courses |
4 |
4 |
4 |
||||
Students |
57 |
57 |
61 |
||||
Revenues |
$ 51,390.00 |
$ 660.00 |
Favourable |
$ 50,730.00 |
$ 3,560.00 |
Unfavourable |
$ 54,290.00 |
Expenses: |
|||||||
Instructer Wages |
$ 10,920.00 |
$ 720.00 |
Favourable |
$ 11,640.00 |
$ - |
None |
$ 11,640.00 |
Classroom supplies |
$ 16,930.00 |
$ 970.00 |
Unfavourable |
$ 15,960.00 |
$ 1,120.00 |
Favourable |
$ 17,080.00 |
Utilities |
$ 1,830.00 |
$ 410.00 |
Unfavourable |
$ 1,420.00 |
$ - |
None |
$ 1,420.00 |
Campus Rent |
$ 5,000.00 |
$ - |
None |
$ 5,000.00 |
$ - |
None |
$ 5,000.00 |
Insurance |
$ 2,140.00 |
$ 140.00 |
Unfavourable |
$ 2,000.00 |
$ - |
None |
$ 2,000.00 |
Administrative expenses |
$ 3,695.00 |
$ 554.00 |
Favourable |
$ 4,249.00 |
$ 20.00 |
Favourable |
$ 4,269.00 |
Total Expenses |
$ 40,515.00 |
$ 246.00 |
Unfavourable |
$ 40,269.00 |
$ 1,140.00 |
Favourable |
$ 41,409.00 |
Net Operating Income |
$ 10,875.00 |
$ 414.00 |
Favourable |
$ 10,461.00 |
$ 2,420.00 |
Unfavourable |
$ 12,881.00 |
--Working
Actual Results |
Flexible Budget |
Planning Budget |
|
Courses |
4 |
4 |
4 |
Students |
57 |
57 |
61 |
Revenues |
51390 |
=57*890 |
=61*890 |
Expenses: |
|||
Instructer Wages |
10920 |
=2910*4 |
=2910*4 |
Classroom supplies |
16930 |
=280*57 |
=280*61 |
Utilities |
1830 |
=1220+(50*4) |
=1220+(50*4) |
Campus Rent |
5000 |
5000 |
5000 |
Insurance |
2140 |
2000 |
2000 |
Administrative expenses |
3695 |
=3800+(41*4)+(5*57) |
=3800+(41*4)+(5*61) |
Conceptual notes: |
#1: Flexible Budget data is based on 'budgeted rates' applied on 'actual level/output/units' |
#2: Spending Variance = Difference between 'Actual data' and 'Flexible Budget data' |
#3: Activity Variance = Difference between 'Flexible Budget data' and 'Static/Planned Budget data'. |
* Favourable Variance in case of Revenues occurs when: |
>Actual revenues are MORE than Flexible budget revenues [Spending Variance] |
>Flexible budget revenues are MORE than Static/Planned budget revenues [Activity Variance] |
* Unfavourable Variance in case of Revenues occurs when: |
>Actual revenues are LESS than Flexible budget revenues [Spending Variance] |
>Flexible budget revenues are LESS than Static/Planned budget revenues [Activity Variance] |
* Favourable Variance in case of Expenses/Costs occurs when: |
>Actual expenses/costs are LESS than Flexible budget expense/costs [Spending Variance] |
>Flexible budget expenses/costs are LESS than Static/Planned budget expenses/costs [Activity Variance] |
* Unfavourable Variance in case of Expenses/Costs occurs when: |
>Actual expenses/costs are MORE than Flexible budget expense/costs [Spending Variance] |
>Flexible budget expenses/costs are MORE than Static/Planned budget expenses/costs [Activity Variance] |
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two...
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers 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 63 students enrolled in those two courses. Data concerning the company's cost formulas appear below Fixed Cost Cost per Cost per Student per Month Course 2,920 Instructor wages Classroom...
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified 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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Cost per Course $ 2,930 Fixed Cost per Month Cost per Student Instructor...
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified 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 63 students enrolled in those two courses. Data conceming the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost...
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified 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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: 2:19:29 Fixed Cost Cost per Cost per per Month Course Student pok $2,950 Instructor...
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers 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 62 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost per Month Cost per Course Cost per Student Instructor wages $ 2,970...
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers 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 65 students enrolled in those two courses. Data concerning the company’s cost formulas appear below: Fixed Cost Cost per per Month Course $ 2,970 Cost per Student $ 280...
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in ce 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 50 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost per cost per...
The Gourmand Cooking School runs short cooking courses a small campus. Management has identified 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 two courses. Data concerning the company's cost formulas appear below Fbed Cost per Cost per Course Cost per Student Instructor wages Classroom Supplies...
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers 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 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost...
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers 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 60 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost Cost Cost...