Complete the performance report.

• Review the existing data in the performance report.
• Calculate the variances.
• Calculate the variance percentages.
• Decide whether the variances are favourable or unfavourable.

	Budget $	Actual $	Variance $	% Variance	Favourable (F) or Unfavourable (U)
Nights booked	8,760	7,665	(1,095)	-0.13	IN
Tariff revenues	1,051,200	919,800	(131,400)	-0.13	IN
Less variable costs
Room servicing labour	175,200	160,965	(14,235)	-0.08	F
Room servicing supplies	43,800	41,391	(2,409)	-0.06	F
Total variable costs	219,000	202,356	(16,644)	-0.08	F
Gross profit	832,200	717,444	(114,756)	-0.14	UF
Less fixed costs
Admin/reception salaries	180,000	189,000	9,000	0.05	UF
Grounds & maintenance	100,000	105,000	5,000	0.05	UF
General manager	85,000	87,500	2,500	0.03	UF
Utilities	90,000	86,000	(4,000)	-0.04	UF
Depreciation	140,000	140,000	-	0.00	F
Total fixed costs	595,000	607,500	12,500	0.02	UF
Net profit before tax	237,200	109,944	(127,256)	-0.54	UF
Less estimated tax expense (30%)	71,160	32,983	(38,177)	-0.54	F
Net profit after tax	166,040	76,961	(89,079)	-0.54	UF

Question 2: Record the information you would communicate to others. Comment on the results explaining the likely causes of the variances and any significant issues you would prioritise

Question 3: What recommendations would you communicate to management given these results?