Login
E-Mail Address:

Password:


 
Shopping Cart
0 items
 
CHARITY AND SPONSOR ADS

1. The Toque Cooking Academy runs short cooking courses at its small campus

1. The Toque Cooking Academy runs short cooking courses at its small campus
Click to enlarge
Price: $5.99
Availability: In Stock
Model: A
Average Rating: 5 out of 5 Stars!

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:

 

                                                Fixed Cost per Month    Cost per Course                                Cost per Student

Instructor wages                                                                             $2,920  

Classroom supplies                                                                                                                        $270  

Utilities                                                 $1,230                                   $65        

Campus rent                                      $5,000                                    

Insurance                                            $2,100                                      

Administrative expenses              $3,800                                   $43                                               $4  

For example, administrative expenses should be $3,800 per month plus $43 per course plus $4 per student. The company’s sales should average $890 per student.

The actual operating results for October appear below:

                                                                Actual

  Revenue                                            $50,500 

  Instructor wages                            $10,960 

  Classroom supplies                       $16,050 

  Utilities                                               $1,900 

  Campus rent                                    $5,000 

  Insurance                                          $2,240 

  Administrative expenses            $3,638 

Required:

1.            The Toque Cooking Academy expects to run four courses with a total of 60 students in October. Complete 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. Complete the company’s flexible budget for this level of activity.

3.            Complete the flexible budget performance report that shows both activity variances and revenue and spending variances for October. 

Write Review
Your Name:
    ( max 12 characters. )

Your Review:
You've typed 0 character(s). You are allowed lots more. Note: HTML is not translated!

Rating: Bad            Good

Enter the code in the box below:

There are no additional images for this product.