Assume you are working on budgeting for the room department of your hotel.

Assume the hotel's 'Room Revenue (Sales)' was $1,640,000 during 2016. Based on the lodging forecast report, you expect the'Room Revenue (Sales)' to increase by 3.7% next year.

Assume the 'Guest Supplies' expenses (variable costs) from the room department was $250,000 during 2016. For 2017, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2016.

Assume the 'Salaries' expenses (fixed costs) from the room department was $280,000 during 2016. For 2017, this fixed cost will increase by 2% due to the expected increase in living expenses in this area.

1.What will be the budgeted 'Room Revenue (Sales)' for 2017?

2.What will be the budgeted 'Guest Supplies' expenses for 2017?

3.What will be the budgeted 'Salaries' expenses for 2017?

(Q4-Q10)Subway at the Student Union projected 3,000 lunches to be sold for September at an average price of $5.50. The actual sales were 3,200 meals and food revenue of $18,400. Use the table below to solve the questions.

Meals (# of units)

Price/unit

Total Revenue

Budget

3,000

$5.5

?

Actual

3,200

?

$18,400

4.What was the total budgeted revenue?

5.What was the actual price per unit?

6.Determine the budget variance (i.e.,total revenue variance).

7.Determine the volume variance.

8.Determine the price variance.

9.Determine the price-volume variance

10.Which variance was favorable in September? ()

A. The volume variance

B. The price variance

C. The budget variance(i.e., total revenue variance)

D. All of the above