P35 Anna was disappointed. She thought she had done a good job controlling house
ID: 442852 • Letter: P
Question
P35
Anna was disappointed. She thought she had done a good job controlling housekeeping labor and towel usage, but her performance report revealed an unfavorable variance of $10,544. She had been hoping for a bonus for her good work, but now expected a series of questions from her manager. The cost budget for housekeeping is based on standard costs. At the beginning of a month, Annan receives a report from Hotel Dell's Sales Department outlining the planned room activity for the month. Anna then schedules labor and purchases using this information. The budget for the housekeeping was based on 8,000 room nights. Each room night is budgeted based on the following standards for various materials, labor, and overhead:Explanation / Answer
A cost center performance evaluation report only contains expenses for the segment of the company that the manager is responsible for. This performance report contains the expenses for the human resources department of a company. The expenses are listed with both the budget and actual figures. The variance column is the absolute value (no negative numbers) of the difference between the budget figure and the actual figure. Because the absolute values are used, there must be a way to determine if the variance is good or bad. Next to each variance, you need to indicate if the difference is a favorable or unfavorable. For expenses, a favorable variance is one where actual cost is less than budgeted. The department saved money, which is a good thing. Unfavorable variances occur when the company spent more than planned.
Account Actual Budget Variance Favourable Shower Supplies 8190 7200 990 No Towels 15563 16000 437 Yes Laundry 27339 24000 3339 No Labor 51591 48000 3591 No VOH 25839 24000 1839 No FOH 41222 40000 1222 No Total 169744 159200 10544 NoRelated Questions
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