Brink 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 June, the school budgeted for 1,710 students and 110 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 June. Label each variance as favorable (F) or unfavorable (U).

Question

Brink 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 June, the school budgeted for 1,710 students and 110 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 June. Label each variance as favorable (F) or unfavorable (U).

Quizplus · Accepted Answer

The Answer of Brink 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 June, the school budgeted for 1,710 students and 110 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 June. Label each variance as favorable (F) or unfavorable (U).

Brink Tech Is a For-Profit Vocational School