MUST USE CELL REFERENCE

B D E F G H I J OVOU AWN 1 Part 3 2 The supervisor of housekeeping for a local hotel, was surprised by her summary performance report for January that shows a high unfavorable variance. 3 The supervisor was disappointed by this performance report. She thought she had done a good job controlling 4 housekeeping labor and towel usage. She had expected a bonus for her good work, but now expected a 5 series of questions from her manager. 6 7 The cost budget for housekeeping is based on standard costs. At the beginning of a month, the housekeeping supervisor 8 receives a report from the hotel's sales department outlining the planned room activity for the month. She then schedules 9 labor and purchases using this information. The budget for housekeeping was based on 8,000 Room nights 10 Each room night is budgeted based on the following standards for various materials, labor, and overhead. 11 12 Shower supplies 3 bottles at $0.30 each 13 Towel-replacement 1 towel at $2 Each 14 Laundry 10 pounds at $0.30 pound 15 Labor 0.5 labor hour at $12 per labor hour 16 Variable Overhead Applied $6 per labor hour 17 Fixed Overhead Applied $5 per room night 18 19 Actual room nights sold 8,300 rooms 20 21 Actual usage: Total actual cost 22 Shower supplies $8,000 for 26,500 bottles 23 Towel-replacement $15,563 for 7,900 towels 24 Laundry $24,000 for 88,500 pounds 25 Labor $50,000 for 4,350 labor hours 26 Variable Overhead $25,000 27 Fixed Overhead $40,100 L M N B D E G H 1 J 0 28 29 Required: 30 1. Prepare a flexible budget performance report for the Housekeeping department that compares actual costs and standard allowed based on actual usage using cell references, 31 Provide a designation of U or F for each cost variance. Use the template I have set up for you. 32 Housekeeping Flexible Budget Performance Report 33 For Month of January Flexible Flexible Budget Budget 34 Actual costs Cost Variances Designation U or F 35 Room nights: 36 37 Shower supplies 38 Towel-replacement 39 Laundry 40 Labor 41 Variable Overhead 42 Fixed Overhead 43 Total 44 45 2. Explain to the Housekeeping supervisor's manager why the supervisor should be evaluated based the flexible budget performance report that you developed in #1 in comparison to what was initially prepared. 46 47 48 49 50 51 52 53 54 55 56