8) The following data pertain to the Avari Hotel, Lahore for the month of December.

Flexible Budget December Actual Results December

(in thousands Rs.) (in thousands Rs.)

Revenues:

Banquets and Catering 1,500 1,520

Restaurants 3,000 2,980

Costs:

Kitchen staff wages (200) (210)

Food 4065 4065

Paper products (250) (244)

Variable overhead (110) (120)

Fixed overhead (180) (190)

Prepare the following:

a. Flexible Budgeted Income Statement for December (3 Marks)

b. Actual Income Statement for December (3 Marks)

c. Variance Report for December (3 Marks)

9) Prepare a Flexible overhead budget for HIA Inc. for 2021 flexed at 100% and 90% activity levels using the following data: (8 marks)

Direct labor hours 3,000

Direct labor hourly rate Rs.50

Variable costs:

Indirect Labor Rs.50/direct labor hour

Consumables Rs. (65/direct labor hour)

Welfare services 5% of direct & indirect labor costs

Fixed costs:

Depreciation Rs.250,000

Maintenance Rs. (314065)

Insurance Rs.35,000

Management Salaries Rs.300,000