Question
Tara is the housekeeping department manager at Hotel Hutchinson, and she requires your assistance analyzing the departments labour cost variances for the month of May.
Tara is the housekeeping department manager at Hotel Hutchinson, and she requires your assistance analyzing the departments labour cost variances for the month of May. The hotel sold 930 rooms in May. The hotel budgets to take 45 minutes cleaning each room and to pay housekeepers $18 per hour. Time sheets for May show 744 housekeeping hours incurred for a total cost of $12,648. Required a) Calculate Mays flexible budget variance for housekeeping labour. b) Calculate Mays cost variance for housekeeping labour. c) Calculate Mays quantity variance for housekeeping labour. d) Explain the flexible budget variance to Tara. e) Tara has asked you to provide some strategies to avoid a similar variance in June
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