B. Vacanza Beach Resort & Spa is a luxurious hotel located in Langkawi, Kedah. The hotel rate is fully inclusive of accommodation and breakfast. However, after receiving a copy of cost report for November, the hotel's presidents, Raphael Vinci is unhappy about the cost report and asked the financial manager, Carlo Umberto to prepare another report to evaluate how well costs were controlled during the month. Carlo has gathered the following data concerning the hotel's costs: Cost Items Food Cleaning supplies Utilities Catering wages Insurance and depreciation Actual Costs (RM) Budgeted Costs (RM) 17,280 20,160 1,920 1,680 1,728 2,100 12,800 11,200 1,860 1,800 The hotel had estimated 8,400 guests and actual number of guests were 9,600 for the month. Assumptions: The budgeted catering wages assume that there is one catering staff will serve for every 30 guests with the rate of RM40 per day. The budget has been calculated on the basis of a 30-day. The budgeted variable costs are based on the number of guests. Required: a) Prepare a report showing the hotel's spending variances for November. b) Explain the meaning of the variances obtained in (a). (15 marks) (2 marks)