Question
Labor variance analysis formulas VV= BR(BT-ATAO) RV= BT(BR-AR) EV=BR(ATAO-AT) R-TV=(BT-AT)(BR-AR) Budgeted rooms sold: 5,000. Budgeted hourly pay rate for room attendants: $4.50. Work standard: clean
Labor variance analysis formulas
VV= BR(BT-ATAO)
RV= BT(BR-AR)
EV=BR(ATAO-AT)
R-TV=(BT-AT)(BR-AR)
Budgeted rooms sold: 5,000. Budgeted hourly pay rate for room attendants: $4.50. Work standard: clean 2 rooms per labor hour. Actual rooms sold: 5,400. Actual average hourly pay rate: $4.60. Actual hours attendants worked: 2,600
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Calculate the total labor cost variance
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Calculate the volume variance, indicating whether it is favorable or unfavorable
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Calculate the rate variance, indicating whether it is favorable or unfavorable
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Calculate the efficiency variance, indicating whether it is favorable or unfavorable
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Comment on the performance of the head housekeepers performance.
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
4th edition
978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730
