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Operation Budgeting
Holly's Hotel budgeted 800 room sales for the week ended March 10. The estimated average price per room was $18.50. The actual average price per room was 10% greater than anticipated, while room sales in units were 10% lass than forecasted.
Q. What is the budget variance for the week? Analyze the budget variance by calculating each revenue variance.
Part 2
For the same week, Holly's Hotel's head housekeeper, based on the work standard, budgeted 400 hours for room attendants to clean the rooms sold. The actual hours worked totaled 380. The estimated average wage rate for the attendants is $4.00 per hour. The wages paid totaled $1444.
Q. 1 Were the room attendants efficient?
2 How much was the rate variance?
3 Based on the above, how would you rate the head housekeeper, considering the dollars spent? Use figured to support your answer.
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