Cecere 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:
Fixed element Variable element Variable element
per month per student per course
Revenue $0 $488 $0
Faculty wages $0 $0 $2,900
Course supplies $0 $76 $42
Administrative expenses $55,700 $26 $29
In February, the school budgeted for 1,740 students and 160 courses. The actual activity for the month was 1,540 students and 161 courses.
Required:
Prepare the school's planning budget for February.