As the manager of the Windy Hotel, you are conducting the performance analysis for last month. The hotel has 200 rooms and sets a target of $100 ADR and 75% occupancy. The standard Rooms Department cost is $25 per occupied room, including housekeeping labor cost which requires 30 minutes per occupied room at $10 per hour. According to the reports you sold 4740 rooms, total Rooms Department Revenue was $450,300, and total department cost was $123,240. The housekeeping department reported 2844 hours of labor at $10 hourly rate. Compare the actual performance to budgeted performance and indicate if it is favorable (F) or unfavorable (U).

STEP 2

Volume Variance & Price Variance: Sales Volume Variance =

Sales Price Variance =

Cost of Sales Volume Variance =

Cost Variance =

Labor Cost Efficiency =