You are the Food and Beverage Manager at a hotel. You just received your latest income statement, showing your actual and budgeted revenues and expenses. You are reviewing the report and calculating variances. Once you know where the significant variances are, you'll speak to your team's duty managers and supervisors to get their input. In a couple of days, you will meet with your boss, the Director of Food & Beverage, and you will have to explain all the variances and what changes you will make to improve your department's results. Budget Actual Food Revenue $835,645 $815,800 Beverage Revenue 695,700 697,900 Food Cost 250,694 256,977 Beverage Cost 173,925 160,517 Labour Cost 352,209 348,151 Other Controllable Expenses 73,500 45,600 Department Income 681,017 702,455 When you answer these questions below, be sure to label your answer, so I know which question you are addressing.

A. Calculate variance % for all the lines. (2 marks)

B. Explain the variances in sentences - one sentence per variance (as if the reader can't see them). (This part is simply factual, stating what the numbers show.)

C. Evaluate the results. (Now, you can judge the numbers... are they good or bad? favourable or unfavourable? any meaningful patterns? how do they compare to your expectations (if a particular item increases or decreases, do you expect a change in a different account)?)

D. Given these results, what steps should you as the manager responsible for this department take?