Brink Tech is a for-profit vocational school.
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:
Prepare a flexible budget performance report showing both the school’s sales-volume variances and flexible-budget variances for June. Label each variance as favorable (F) or unfavorable (U).
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