Exercise Algo Working with More Than One Cost Driver LO LO LO LO
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses for budgeting purposes 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 students enrolled in those two courses. Data concerning the company's cost formulas appear below:
tabletableFixedCostperMonthtableCostperCourse StudenttableCostperInstructor wages,,Classroom supplies,,,$Utilities$Campus rent,InsuranceAdministrative$$expenses
For example, administrative expenses should be $ per month plus $ per course plus $ per student. The company's sales should average $ per student.
The company planned to run four courses with a total of students; however, it actually ran four courses with a total of only students. The actual operating results for September were as follows:
