Question
Gaurav's Restaurant is analyzing an increase in its labour cost. You have been given the following information on the average hourly rate for its
Gaurav's Restaurant is analyzing an increase in its labour cost. You have been given the following information on the average hourly rate for its front-of-house positions and an excerpt from its budget and actual results for the month. Position Server Busser Host Position Required Server Busser Host Actual Total Cost $11,963 2,320 1,615 Average Rate $16.00 $15.00 $18.00 Hours Worked 725 160 95 Budget Total Cost $12,000 $2,250 $1,620 Hours Worked 750 150 90 a) Calculate the cost variance for each position. b) Calculate the quantity variance for each position. c) Calculate the total variance for each position.
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
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