John Evans has been working as assistant to the executive housekeeper at a $624-$room resort in Boca Raton, Florida, for six months. John has been left in charge of the department for the two weeks while his boss is on vacation. On May $15,$ he receives a call from Carol Collins, the property$$s controller, requesting a labor cost forecast for the month of June. John is told that the budgeted occupancy for the month has been downgraded because of the cancellation of three large conventions that had been previously booked. Carol provides John with the following information:

Budgeted occupancy in June: $90$ percent

New occupancy forecast for June: $75$ percent

Average section housekeeper hourly wage: $$10\mathrm{.}50$

Budgeted monthly team supervisors and Housepersons total labor cost: $$24,100$

Budgeted monthly laundry labor cost: $$19,760$

Budgeted monthly fixed team labor cost: $$11,800$

Budgeted evening team labor cost: $$7,100$

Budgeted monthly management team salaries: $$10,400$

John knows that the section housekeeper workload for one $8-$hour shift is $15$ rooms. He decides not to change the labor cost for the fixed and management teams but to reduce the laundry budgeted labor cost by $15$ percent, the supervisor$/$houseperson$$s by $8$ percent and the evening team$$s by $5$ percent.

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$1.$ Calculate the new total departmental labor cost for the month of June and compare it with the budgeted labor cost. What is the difference between the budgeted and new labor cost in dollars?Can you give me detailed answer? 

Answer rating: 100% (QA)

To calculate the new total departmental labor cost for the month of June we need to adjust the budge... View the full answer