Part 1
Holly's Hotel budgeted 800 room sales for the week ended March 10. The estimated average price per room was $18.50. The actual average price per room was 10 percent greater than anticipated, while room sales in units were 10 percent less than forecasted.
Required:
What is the budget variance for the week? Analyze the budget variance by calculating each revenue variance.
Part 2
For the same week, Holly's Hotel's head housekeeper, based on the work standard, budgeted 400 hours for room attendants to dean the rooms sold. The actual hours worked totaled 380. The estimated average wage rate for the attendants is $4.00 per hour. The wages paid totaled $1,444.
Required:
1. Were the room attendants efficient?
2. How much was the rate variance?
3. Based on the above, how would you rate the head housekeeper, considering the dol¬lars spent? Use figures to support your answer.
Use the following information to formulate a simplified cash budget for Heidi's Place:
|
Dec. |
Feb. |
Mar. |
|
| Sales |
$40,000 |
$40,000 |
$50,000 |
$75,000 |
| Inventory Purchases |
15,(XX) |
17,000 |
18,000 |
30,000 |
| Other Cash Expenses |
15,()X) |
15,000 |
22,000 |
37,000 |
| Capital Purchases (with cash) |
-0- |
-0- |
10,000 |
-0- |
Sales: 60 percent of the sales are cash while the remaining 40 percent are credit sales. One half of the credit sales are collected in the
month of sale and one half in the next month.
Inventory Purchases : 80 percent of the purchases are paid in the month of the purchase while 20 percent are paid in the next month.
Other: Assume that other cash expenses and capital purchases are paid for during the month indicated above (for example, other cash expenses of $15,000 for December were paid in December).
Assume that the beginning cash balance of January 1 is $5,000.
Required:
Complete a cash budget for January - March. You must show all your work in order to receive full credit. Use the format for the budget that was used in the homework for this chapter.