Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ACCOUNTING MATTER. PLEASE HELP ME. THANK YOU 3. A motel had budgeted an occupancy of 8,000 rooms with a selling price of $82.00 per room

ACCOUNTING MATTER. PLEASE HELP ME. THANK YOUimage text in transcribed

3. A motel had budgeted an occupancy of 8,000 rooms with a selling price of $82.00 per room and a variable housekeeping cost of $4.50 per room. Actual data indicated that a total of 8,550 rooms were sold at an average selling price of $76.00 per room and the actual cost of housekeeping was $4.80 per room. (18 marks) Answer the following questions about the housekeeping costs: a. What is the cost variance? Is it favorable or unfavorable and state why? b. What is the quantity volume variance? Is it favorable or unfavorable and state why? c. What is the budget variance? Is it favorable or unfavorable and state why? Answer the following questions about the sales revenue: d. What is the price variance? Is it favorable or unfavorable and state why? e. What is the sales volume variance? Is it favorable or unfavorable and state why? f. What is the budget variance? Is it favorable or unfavorable and state why

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions