Part 3 The supervisor of housekeeping for a local hotel, was surprised by her summary performance...

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Part 3 The supervisor of housekeeping for a local hotel, was surprised by her summary performance report for January that shows a high unfavorable variance. 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 from 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 Each room night is budgeted based on the following standards for various materials, labor, and overhead. 3 bottles 1 towel Shower supplies at Towel-replacement at Laundry 10 pounds at Labor 0.5 labor hour at Variable Overhead Fixed Overhead Applied Applied Actual room nights sold $0.30 each $2 Each $0.30 pound $12 per labor hour $6 per labor hour $5 per room night 8,300 rooms 8,250 Room nights Actual usage: Shower supplies Towel-replacement Laundry Labor Variable Overhead Fixed Overhead Total actual cost $7,500 for $16,000 for $25,000 for $50,000 for $25,025 $40,500 26,500 bottles 7,900 towels 88,500 pounds 4,350 labor hours Required: 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. Provide a designation of U or F for each cost variance. Use the template I have set up for you. Housekeeping Flexible Budget Performance Report For Month of January Flexible Flexible Actual costs Budget Cost Budget Variances Designation U or F Room nights: Shower supplies Towel-replacement Laundry Labor Variable Overhead Fixed Overhead Total 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. Part 3 The supervisor of housekeeping for a local hotel, was surprised by her summary performance report for January that shows a high unfavorable variance. 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 from 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 Each room night is budgeted based on the following standards for various materials, labor, and overhead. 3 bottles 1 towel Shower supplies at Towel-replacement at Laundry 10 pounds at Labor 0.5 labor hour at Variable Overhead Fixed Overhead Applied Applied Actual room nights sold $0.30 each $2 Each $0.30 pound $12 per labor hour $6 per labor hour $5 per room night 8,300 rooms 8,250 Room nights Actual usage: Shower supplies Towel-replacement Laundry Labor Variable Overhead Fixed Overhead Total actual cost $7,500 for $16,000 for $25,000 for $50,000 for $25,025 $40,500 26,500 bottles 7,900 towels 88,500 pounds 4,350 labor hours Required: 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. Provide a designation of U or F for each cost variance. Use the template I have set up for you. Housekeeping Flexible Budget Performance Report For Month of January Flexible Flexible Actual costs Budget Cost Budget Variances Designation U or F Room nights: Shower supplies Towel-replacement Laundry Labor Variable Overhead Fixed Overhead Total 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.