Rizzio 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 September, the school budgeted for 1,820 students and 173 courses. The actual activity for the month was 2,020 students and 178 courses.Required:Prepare the school's planning budget for September.

Cost Drivers

Factors that cause a change in the cost of an activity, used in activity-based costing to allocate costs based on the actual consumption of each activity.

Vocational School

An educational institution that focuses on teaching students specific trade skills or vocations rather than providing a general academic education.

Planning Budget

A budget prepared for a specific level of activity; it outlines expected revenues, expenses, and other financial parameters for a future period.