Hua Chang Resort has prepared the following budgeted amounts for its costs for 2020. Hua Chang has 32 luxury rooms available in the resort. It operates 365 days of the year.

Required

(a) Prepare a fixed budget performance report for 2020 by preparing a budget for each cost item based on its fixed costs plus the variable cost per room night multiplied by the actual number of room nights occupied. Compare this budget with the actual costs incurred.

Transcribed Image Text:

Costs Wages Electricity Fixed amount $128.000 24000 Variable cost per room per night $6.00 4.00 Cleaning 32000 6.00 Supplies 8400 1.50 Water 15600 0.20 Maintenance 4800 1.20