The housekeeping summary performance report for Jan. is listed below for a local hotel.

Actual: $169,744 Budget: $159,200 Variance: $10,544 U Percentage of Variance: 6.62%

The supervisor was upset by the performance report because he thought a good job was done controlling labor and towel usage. A bonus was expected, but most likely not now. The cost budget for housekeeping is based on standard costs. At the beginning of the month, the supervisor received a report for the sales department outlining the planned room activity for the month. He then schedules labor and purchases using this information. The budget for housekeeping was based on 8,000 room nights. Each room night is budgeted on the following standards for various materials, labor and overheard.

Shower supplies: 3 bottles @ $.30 each

Towel replacement: 1 towel @ $2 each

Laundery: 10 pounds @ $.30 per pound

Labor .5 hour @ $12 per hour

Variable overhead (applied): $6 hour

FiXed overhead (applied): $5 a room based on 8,000 room nights

Actual room nightsold: 8,900 rooms

Actual usage Total actual cost

Showe supplies $8,190 for 26,500 bottles

Towel replacement $15,563 fro 7,900 towels

Laundry $27,339 for 88,500 pounds

Labor $51,591 for 4,350 hours

Variable overhead $25,839

Fixed overhead $41,222

Required: Prepare a flexible budget performance for the housekeeping performance that compares actual costs & standard allowed based on actual usage. Provide if it is U or F for each cost variance. Use the below template.

Actual costs flexible budget cost flexible budget variances U/F

Room Nights:

Shower supplies

Towel replacement

Laundry

Labor

Variable overhead

Fixed overhead

total