Exam 10: Flexible Budgeting and Variance Analysis

Use the following information to answer the next two questions. The Smoke n' Mirrors hotel housekeeping department has established a room cleaning standard of 30 minutes to clean a room by casual staff paid $15 per hour. In April the housekeeping casual staff were paid $20,385 and worked 1,350 hours to clean 3,000 rooms. -What is the labour efficiency variance for the casual housekeeping staff at the Smoke n' Mirrors hotel in April?

A materials efficiency variance can be calculated as:

Use the following information to answer the next two questions. The BlueGum Hotel predicted $12,000 in variable labour costs and room revenue of $220,000 from 2,000 room sales in its static budget for January. The hotel actually sold 1,800 rooms and incurred $10,000 in variable labour costs in January -What is the BlueGum hotel's flexible budget variance for labour variable costs in January?

Use the following information to answer the next two questions. The Sydney Harbour Bridge View Hotel predicted $30,000 in variable housekeeping costs and room revenue of $240,000 from 3,000 room sales in its static budget for March. The hotel actually sold 3,300 rooms and incurred $32,000 in variable housekeeping costs in March. -What is the Sydney Harbour Bridge View Hotel's flexible budget variance for variable housekeeping costs in March?

Which of the following statements is not true?

Use the following information to answer the next two questions. At the beginning of the current financial year, the BeachShack Hotel established the standard that it should take 45 minutes to process 1 container of laundry. The Hotel also budgeted that laundry labour should be paid $18 per hour. At the end of May, the laundry department's performance report indicated that 160 hours had been worked in processing 200 containers of laundry. Laundry staff wages for May were $3,200. -What is the Beach Shack hotel's laundry labour efficiency variance for May?

Which of the following statements is not true.

Use the following information to answer the next two questions. The Sydney Harbour Bridge View Hotel predicted $30,000 in variable housekeeping costs and room revenue of $240,000 from 3,000 room sales in its static budget for March. The hotel actually sold 3,300 rooms and incurred $32,000 in variable housekeeping costs in March. -What would be recorded in the Sydney Harbour Bridge View Hotel's flexible budget for variable housekeeping costs in March?

A materials price variance can be calculated as:

Use the following information to answer the next two questions. The Big Ben View Hotel predicted $20,000 in variable housekeeping costs and room revenue of $242,000 from 2,200 room sales in its static budget for March. The hotel actually sold 2,310 rooms and incurred $20,800 in variable housekeeping costs in March. -What would be recorded in the Big Ben View Hotel's flexible budget for variable housekeeping costs in March?

Use the following information to answer the next two questions. The BlueGum Hotel predicted $12,000 in variable labour costs and room revenue of $220,000 from 2,000 room sales in its static budget for January. The hotel actually sold 1,800 rooms and incurred $10,000 in variable labour costs in January -What would be recorded in the BlueGum hotel's flexible budget for variable labour costs in January?

Use the following information to answer the next two questions. The Smoke n' Mirrors hotel housekeeping department has established a room cleaning standard of 30 minutes to clean a room by casual staff paid $15 per hour. In April the housekeeping casual staff were paid $20,385 and worked 1,350 hours to clean 3,000 rooms. -What is the labour rate variance for the casual housekeeping staff at the Smoke n' Mirrors hotel in April?

A labour rate variance can be calculated as:

The term 'benchmarking' is generally used to refer to:

A flexible budget:

Use the following information to answer the next two questions. At the beginning of the current financial year, the BeachShack Hotel established the standard that it should take 45 minutes to process 1 container of laundry. The Hotel also budgeted that laundry labour should be paid $18 per hour. At the end of May, the laundry department's performance report indicated that 160 hours had been worked in processing 200 containers of laundry. Laundry staff wages for May were $3,200. -What is the Beach Shack hotel's laundry labour rate variance for May?

Use the following information to answer the next two questions. The Big Ben View Hotel predicted $20,000 in variable housekeeping costs and room revenue of $242,000 from 2,200 room sales in its static budget for March. The hotel actually sold 2,310 rooms and incurred $20,800 in variable housekeeping costs in March. -What is the Big Ben View Hotel's flexible budget variance for variable housekeeping costs in March?