[HA260] Hospitality Managerial Accounting

Assignment #6

Name: _____________________

[Note] You are required to provide the process for full-credit consideration. If you provide just final answers, you will get credits up to 50% of full-credit.

Hollys Hotel budgeted 800 room sales for the week ended April 24. The estimated average price per room was $18.50. The actual average price per room was 10 percent greater than anticipated, while room sales in units were 10 percent less than forecasted.

Complete the following table for the Hotels revenue variance analysis.

	Rooms	Rate	Total
Budget	800	18.50
Actual
Difference

Calculate the budget variance.

Calculate the price variance.

Calculate the volume variance.

Calculate the price-volume variance.

For the same week, Hollys Hotels head housekeeper, based on the work standard, budgeted 400 hours for room attendants to clean the rooms sold. The actual hours worked totaled 380. The estimated average wage rate for the attendants is $4.00 per hour. The wages paid totaled $1,444.

Complete the following table for the Hotels expense variance analysis.

	Rooms	Hours	Rate	Total
Budget	800	400	$4.00
Actual	720
Difference

Calculate the ATAO (Allowable time for actual output).

How many rooms can a room attendant clean per hour?

Given that 720 rooms had to be cleaned, how much time should have been spent in hours (ATAO)?

Calculate the efficiency variance.

What does the efficiency variance tell you? Were the room attendants efficient?

Calculate the rate variance.