University Inn's most recent monthly expense analysis report revealed significant cost overruns. The manager was asked to explain the deviations. Below is the "budget v. actual" expense report for the month in question. University Inn Budget v. Actual Expense Report For the Month Ending October 31, 20x7 Actual Budget Variance: Utilities Laundry Food service 52,000 $ 45,000 $ (7,000) 20,000 18,000 (2,000) 41,000 35,000 (6,000) Rent/taxes 60,000 60,000 Staff wages 57,000 55,000 (2,000) Management salaries 43,500 45,000 1,500 Water 13,000 10,000 (3,000) Maintenance 15,200 15,000 (200) 301.700 283,000 S (18.700) 301,700 15,000 (200) 283,000 (18.700) The Inn has observed that utilities, water, food service, staff wages, and laundry costs all vary with activity. The other costs are fixed. The preceding budget was based upon an assumed 80% occupancy rate. The university's football team was on a winning streak and numerous alumni were returning to campus in October, resulting in a 96% occupancy rate during the month. Question 1 The manager should be congratulated for cost control rather than criticized for cost overruns. True O False 1 pts Question 2 What is the total amount of budgeted expenses? Question 3 Which of the following was a fixed cost in this problem? Rent/Taxes Utilities Water