Prepare a flexible budget performance report for the housekeeping department tha
ID: 2537993 • Letter: P
Question
Prepare a flexible budget performance report for the housekeeping department that compares actual costs & standar allowed based on actual usage. Provide a designated U or F for each cost variance. Use the below template.
The supervisor of housekeeping for a local hotel, was surprised by her summary performance report for January that is shown below: Housekeeping Performance Report For the month of January Actual Budget Variance Percentage of Variance $169,744 $159,200 $10,544 U 6.62% The supervisor was disappointed by this performance report. She thought she had done a good job controlling housekeeping labor and towel usage. She had expected a bonus for her good work, but now expected a series of questions from her manager. The cost budget for housekeeping is based on standard costs. At the beginning of a month, the housekeeping supervisor receives a report fro the hotel's sales department outlining the planned room activity for the month. She then schedules labor and purchases using this information. The budget for housekeeping was based on 8,000 room nights. Each room night is budgeted based on the following standards for various materials, labor, and overhead. Shower supplies 3 bottles at $0.30 each Towel-replacement 1 towel at $2 Each Laundry 10 pounds at $0.30 pound Labor 0.5 hour at $12 hour Variable Overhead Applied $6 hour Fixed Overhead Applied $5 a room night based on 8,000 Room nights Actual room nights sold 8,900 rooms Actual usage: Total actual cost Shower supplies $8,190 for 26,500 bottles Towel-replacement $15,563 for 7,900 towels Laundry $27,339 for 88,500 pounds Labor $51,591 for 4,350 labor hours Variable Overhead $25,839 Fixed Overhead $41,222Explanation / Answer
flexible budget performance report for the housekeeping department that compares actual costs & standard allowed based on actual usage is as prepared below:
Housekeeping Flexible Budget Performance Report For Month of January Actual costs Flexible Budget Cost Flexible Budget Variances Designation U or F Room nights: 8,900 8,900 Shower supplies 8,190 8,010 180 U Towel-replacement 15,563 17,800 -2,237 F Laundry 27,339 26,700 639 U Labor 51,591 53,400 -1,809 F Variable Overhead 25,839 26,100 -261 F Fixed Overhead 41,222 40,000 1,222 U Total 169,744 172,010 -2,266 F