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Managerial accounting 8th edition 9-12

EXERCISE 9-12 Working with More Than One Cost Driver LO9-1, LO9-2, LO9-3 fed two cost drivers it uses in its bud tical number of students. For example, the school might run two courses in a month and have a total of Cooking School runs short cooking courses at its small campus. Management has identi- geting and performance reports-the number of courses and the sudents enrolled in those two courses. Data concerning the company's cost formulas a 50 students Fixed Cost Cost per Cost per per Month Course Student $3,080 $260 Utilities $870 $130 $4,200 $1,890 $3.270 Insurance Administrative expenses $15 $4 For example, administrative expenses should be $3,270 per month plus $15 per course plus $4 per student. The company's sales should average $800 per student. The company planned to run three courses with a total of 45 students; however, it actually ran three courses with a total of only 42 students. The actual operating results for September appear below: Actual Revenue.... Classroom supplies. Utilities . $8,540 $1,530 Insurance Administrative expenses. " $1,890 $3,790 Using as your guide, prepare the company's planning budget for September ing Exhibit 9. - as your guide, prepare the company's flexible budget for September revenue and spending variances for September. Hint Refer to Exhibit 9-6) C

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