3. Nancy Simon is the long-time catering director of Naples-on-the Beach, a hotel noted throughout the industry for quality, profitability, and cost control. The hotel recently catered a steak dinner for a 2,000-person convention. Strict standards were in place for the dinner: 0.75 pounds of beef per plate at P 9 per pound. A review of the accounting records shortly after the convention showed that 1,680 pounds of beef were purchased and consumed, costing the hotel P 13,440.

Required:

a.Calculate the cost of beef budgeted for the dinner and the total beef variance (i.e. the difference between budgeted and actual cost). Should this variance be of concern to the hotel? Why?

b.Assess the job that Simon did in "managing" the beef purchase by performing a variance analysis. Comment on your findings.

c.Assume that the hotel received a number of complaints shortly after the dinner concluded. Explain a possible reason behind the conventioneers' unhappiness.

4. Orlando Corporation uses standard costing in its manufacturing operations. Overhead is applied based in direct labor hours. The following budget and actual data were provided for the month of September 2014:

Budgeted fixed overhead costsP 24,000

Budgeted variable overhead costs48,000

Total budgeted factory overheadP 72,000

Fixed factory overhead rateP 4.80 per hour

Variable factory overhead rate9.60 per hour

Overall factory overhead rateP 14.40 per hour

Normal capacity (direct labor hours)5,000 hours

Standard labor time per unit of product2 hours

Units produced during the period2,000 units

Actual hours worked during the period5,300 hours

Actual factory overhead incurredP61,000

Required:

a.Calculate the overall factory overhead variance

b.Two-way analysis of factory overhead variances

1.Controllable variance

2.Volume variance

please provide solution with explanation, thank you!