An 80-room motel forecasts its average room rate to be $68.00 for next year at 75% occupancy. The rooms department has a fixed wage cost of $186.000. Variable wage cost for housekeeping is $9.00 an hour it takes one-half hour to clean a room. Fringe benefits are 18% of total wages Linen, laundry, supplies, and other direct costs are $2.75 per occupied room per day. The motel also has a 50-seat, limited-menu snack bar Breakfast revenue is derived solely from customers staying overnight in the motel. On average, 40% of occupied rooms are occupied by two persons and, on average, 80% of overnight guests will eat breakfast Average breakfast check is $6.50. Lunch seat turnover is 1.5. with an average check of $8.95. The average dinner check is $10.95 and there are 2.0 seat turns for dinner The snack bar is open 365 days a year for all three meals. Direct costs for the snack bar are 78% of total snack bar revenue. Indirect costs for the motel are estimated at $580,800 for next year Calculate the budgeted contributory income statement for each department and a consolidated total motel departmental income statement to determine operating income. Assume that at the end of next year, actual revenue was on 21,700 rooms occupied at an average rate of $68.40; actual housekeeping wages (before employee fringe benefits) were $108,208. Analyze room revenue for price and sales volume variances and housekeeping wages for cost, quantity, and sales volume variances; assume it took 32 minutes to clean each room actually occupied (sold). An 80-room motel forecasts its average room rate to be $68.00 for next year at 75% occupancy. The rooms department has a fixed wage cost of $186.000. Variable wage cost for housekeeping is $9.00 an hour it takes one-half hour to clean a room. Fringe benefits are 18% of total wages Linen, laundry, supplies, and other direct costs are $2.75 per occupied room per day. The motel also has a 50-seat, limited-menu snack bar Breakfast revenue is derived solely from customers staying overnight in the motel. On average, 40% of occupied rooms are occupied by two persons and, on average, 80% of overnight guests will eat breakfast Average breakfast check is $6.50. Lunch seat turnover is 1.5. with an average check of $8.95. The average dinner check is $10.95 and there are 2.0 seat turns for dinner The snack bar is open 365 days a year for all three meals. Direct costs for the snack bar are 78% of total snack bar revenue. Indirect costs for the motel are estimated at $580,800 for next year Calculate the budgeted contributory income statement for each department and a consolidated total motel departmental income statement to determine operating income. Assume that at the end of next year, actual revenue was on 21,700 rooms occupied at an average rate of $68.40; actual housekeeping wages (before employee fringe benefits) were $108,208. Analyze room revenue for price and sales volume variances and housekeeping wages for cost, quantity, and sales volume variances; assume it took 32 minutes to clean each room actually occupied (sold)
