Riggan Tech is a for-profit vocational school.The school bases its budgets on two measures of activity (i.e. ,cost drivers),namely student and course.The school uses the following data in its budgeting: In December,the school budgeted for 1,970 students and 163 courses.The school's income statement showing the actual results for the month appears below: Required:
Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for December.Label each variance as favorable (F)or unfavorable (U).

Question

Riggan Tech is a for-profit vocational school.The school bases its budgets on two measures of activity (i.e. ,cost drivers),namely student and course.The school uses the following data in its budgeting:  In December,the school budgeted for 1,970 students and 163 courses.The school's income statement showing the actual results for the month appears below:  Required:
Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for December.Label each variance as favorable (F)or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Riggan Tech is a for-profit vocational school.The school bases its budgets on two measures of activity (i.e. ,cost drivers),namely student and course.The school uses the following data in its budgeting:  In December,the school budgeted for 1,970 students and 163 courses.The school's income statement showing the actual results for the month appears below:  Required:
Prepare a flexible budget performance report showing both the school's activity variances and revenue and spending variances for December.Label each variance as favorable (F)or unfavorable (U).

Riggan Tech Is a For-Profit Vocational School