Discussion post $1...$Aunt Janes Inn's most recent monthly expense analysis report revealed significant cost overruns. The manager was asked

to explain the deviations. Below is the "budget v$.$ actual" expense report for the month in question.

Actual

Budget

Variance

Utilities

$85,678\mathrm{.}00$

$71,300\mathrm{.}00$

$(14,378\mathrm{.}00)$

Laundry

$31,538\mathrm{.}00$

$26,400\mathrm{.}00$

$(5,138\mathrm{.}00)$

Food Service

$59,800\mathrm{.}00$

$54,000\mathrm{.}00$

$(5,800\mathrm{.}00)$

Rent$/$taxes

$95,000\mathrm{.}00$

$95,000\mathrm{.}00$

$-$

Staff Wages

$91,500\mathrm{.}00$

$88,700\mathrm{.}00$

$(2,800\mathrm{.}00)$

Management Salaries

$65,000\mathrm{.}00$

$68,000\mathrm{.}00$

$3,000\mathrm{.}00$

Water

$23,690\mathrm{.}00$

$17,000\mathrm{.}00$

$(6,690\mathrm{.}00)$

Maintenance

$31,400\mathrm{.}00$

$28,000\mathrm{.}00$

$(3,400\mathrm{.}00)$

$483,606\mathrm{.}00$

$448,400\mathrm{.}00$

$(35,206\mathrm{.}00)$

The Inn has observed that utilities, water, food service, staff wages, and laundry costs all vary with activity. The other cost

are fixed. The budget reflected above was based upon an assumed $80\%$ occupancy rate. The university's football team

on a winning streak and numerous alumni were returning to campus in October, resulting in a $92\%$ occupancy rate du

the month.

Prepare a $""$flexible budget"" based upon a $92\%$ occupancy rate, and identify whether the Inn is being efficiently or

inefficiently run. Comment on specific costs, and note why a flexible budget can improve performance evaluations.

Discussion post $2....$Setting standard costs are one of the most important items in creating a budget. Discuss who should be setting the standards? Why? What considerations should the standards have? What should management consider as they set standards? How can they be used to motivate employees?

ANSWER this question only$>>$ give a summary on what you learned from both discussion post?