Variance Analysis

Marios Pizzeria has the following results for the month of November:

	Guest Counts	Price	Average Cost of Goods
Budget	5210	$8.26	$2.15
Actual	5315	$8.14	$2.19

Mario needs some assistance in understanding what happened to his business in November. You have decided to complete a Revenue and Cost of Goods Variance Analysis that is similar to what you learned in HM 336. Complete a variance analysis for Sales highlighting the Price/Volume variances and Cost of Goods highlighting the Cost/Volume variances.

Calculate the labor variances for Hotel Grand for the year (365 days). There are 120 rooms at the hotel and the budgeted occupancy of the hotel was 75%. The budgeted standard to clean a room is 32.5 minutes per room for housekeeping services and the budgeted wage is $9.25 per hour. In looking at the actual performance for the hotel, you find that the actual occupancy was 74% and the total actual expense for housekeeping wages was $166,698 for 17,850 hours. Compute the total labor variance and the three variances (volume, rate, and efficiency). Finally, comment on the performance of the head of housekeeping on her/his performance for the year.