AssumeCasinoDalton

operates

4,000

guest rooms in three hotels. The complex also includes the casino, retail shops, restaurants, nightclubs, a

1,600-seat

entertainment venue, and a large convention facility. Housekeeping is a significant cost in running a hotel; housekeeping includes daily cleaning of occupied guest rooms and guest bathrooms. What follows is a table of selected data regarding housekeeping costs in the

Pascal's

Tower:

Standard Data Standard hours per hotel room cleaning ..................... 0.25 Total standard housekeeping hours in 2015Pascal's Tower. . . . 37,150 Standard average housekeeper wage rate per hour ............ $ 17.00 Budgeted number of rooms to be cleaned in 2020 ............. 143,400 Actual Data Actual hours per hotel room cleaning ....................... 0.40 Total actual housekeeping hours in 2020Pascal's Tower ...... 43,710 Actual average housekeeper wage rate per hour .............. $ 16.00 Actual number of rooms cleaned in 2020 ..................... 145,850 1. Calculate the labour rate variance (LRV) for the Pascal's Tower housekeeping in 2020. Hint: LRV=Actual hoursx (Actual rate Standard rate). Answer the following questions about the LRV: a. Is the LRV favourable or unfavourable? How do you know? b. What are some possible reasons for this labour rate variance? 2. Calculate the labour efficiency variance (LEV) for the Pascal's Tower housekeeping in 2020. Hint: LEV: Standard rate x(Actual hours Standard hours). Answer the following questions about the LEV: a. Is the LEV favourable or unfavourable? How do you know? b. What are some possible reasons for this labour efficiency variance