Part 3 The supervisor of housekeeping for a local hotel, was surprised by her summary performance report for January that is shown below: Housekeeping Performance Report For the month of January Actual Budget Variance Percentage of Variance $ 169,744 $ 159,200 $ 1 6.62% The supervisor was disappointed by this performance report. She thought she had done a good job controlling housekeeping labor and towel usage. She had expected a bonus for her good work, but now expected series of questions from her manager. The cost budget for housekeeping is based on standard costs. At the beginning of a month, the housekeeping supervisor receives a report fro the hotel's sales department outlining the planned room activity for the month. She then schedules labor and purchases using this information. The budget for housekeeping was based on 8,000 room nights Each room night is budgeted based on the following standards for various materials, labor, and overhead. Shower supplies 3 bottles 50.30 each Towel-replacement 1 towel Laundry 10 pounds $0.30 pound 0.5 hour 2 2 2 $2 Each _abo $12 hour Variable Overhead Applied $6 hour Fixed Overhead Applied $5 a room night based on 8,000 Room nights Actual room nights sold 8,500 rooms Actual usage: Total actual cost Shower supplies $8,190 for 26,500 bottles Towel-replacement $15,563 for 7,900 towels Laundry $24,000 for 8,500 pound Labor $51,591 for 4,350 labor hours Variable Overhead $25,100 Fixed Overhead $40,500 Required: 1. Prepare a flexible budget performance report for the Housekeeping department that compares actual costs and standard allowed based on actual usage using cell references. Provide a designation of U or F for each cost variance. Use the template I have set up for you. Housekeeping Flexible Budget Performance Report For Month of January Flexible Flexible Budget Actual costs Budget Cost Variances Designation U or F Room nights: Shower supplies Towel-replacement Laundry Variable Overhead Fixed Overhead 2. Explain to the Housekeeping supervisor's manager why the supervisor should be evaluated based the flexible budget performance report that you developed in #1 in comparison to what was initially prepared