Reference no: EM133157323

Question - Breakfast Bar Analysis - You have just been appointed as General Manager of Spatial Suites; a small boutique hotel situated outside the downtown core of a major city. Spatial has 19 guest rooms and a small 42-seat café that serves breakfast only called the Breakfast Bar. The Hotel has not been performing very well over the past few years and Sarah, the owner, has asked you to determine why results were not as planned in the prior year and what your plan is to return to profitability.

The Breakfast Bar is open to hotel guests and the public 7 days a week. The restaurant manager budgeted sales of $318,864 to 24,528 guests. The Chef is responsible for maintaining a 29% food cost. Server labour was budgeted at $48,180 and kitchen labour of $58,400. They require 2 servers every day for 6 hours and 2 cooks every day for 5 hours. The only other costs incurred are utilities budgeted at $6,100 and the supervisor's salary of $41,000.

Actual results for 2021 were as follows:

Prepare a Flexible Budget Analysis for the Breakfast Bar for the Year.

Calculate the Revenue Price Variance.

Calculate the Kitchen Labour Cost Variance.