A hotel budgets 6,400 rooms sold and housekeeping costs at $4.90/room. Actual sales were 6,250 rooms and actual costs were $4.40 per room. Compute the cost, volume and budget variances and indicate whether they are favorable or unfavorable.
	Volume	Cost	Variance	Fav/Unfav?
Cost Variance
Volume Variance
	Budget Cost	Actual Cost	Variance	Fav/Unfav?
Cost Budget Variance
A motel has 45 rooms, an occupancy rate of 76% and an average room rate of $58.00. Fixed costs are $480,000 and the variable cost per room sold is $8.00. What is the estimated annual sales revenue and operating income?
Number of rooms
Occupancy.rate
Average room rate
Days open per year
Estimated revenue
Fixed costs
Variable cost/room sold
Total variable costs
Operating income
An 80 seat coffee shop is open 365 days per year. What is the estimated annual sales revenue given the turnover and average check per meal data below?
	Seats	Turnover	Avg check	Days open	Annual revenue
Breakfast	80	2.50	$7.80	365
Lunch	80	1.75	$8.75	365
Dinner	80	2.75	$11.25	365
Total projected revenue
A restaurant has budgeted sales of $912,000. Variable costs are 72% of sales and fixed costs are $102,000. Calculate total variable costs, gross margin and operating income.
Sales
Variable cost rate
Total variable costs
Gross margin
Fixed costs
Operating income