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EXERCISE 9–16 Working with More Than One Cost Driver [LO4, LO5] The Toque Cooking Academy runs…

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EXERCISE 9–16 Working with More Than One Cost Driver [LO4, LO5] The Toque Cooking Academy runs… 1 answer below » EXERCISE 9–16 Working with More Than One Cost Driver [LO4, LO5] The Toque Cooking Academy 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 four courses in a month and have a total of 60 students enrolled in those four courses. Data concerning the company’s cost formulas appear  below: View complete question » EXERCISE 9–16 Working with More Than One Cost Driver [LO4, LO5] The Toque Cooking Academy 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 four courses in a month and have a total of 60 students enrolled in those four courses. Data concerning the company’s cost formulas appear  below: For example, administrative expenses should be $3,940 per month plus $46 per course plus $7 per student. The company’s sales should average $850 per student. The actual operating results for October appear below: Actual Revenue . . . . . . . . . . . . . . . . . . . $48,100 Instructor wages . . . . . . . . . . . . . $11,200 Classroom supplies. . . . . . . . . . . $18,450 Utilities. . . . . . . . . . . . . . . . . . . $1,980 Campus rent . . . . . . . . . . . . . . . . $5,100 Insurance . . . . . . . . . . . . . . . . . . $2,480 Administrative expenses. . . . . . . $3,970 Required: 1.       The Toque Cooking Academy expects to run four courses with a total of 60 students in Octo- ber. Prepare the company’s planning budget for this level of activity. 2.       The school actually ran four courses with a total of 58 students in October. Prepare the com- pany’s flexible budget for this level of activity. 3.       Prepare a flexible budget performance report that shows both activity variances and revenue and spending variances for October. View less » Dec 07 2015 06:13 PM


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