Question

The following data pertain to the Waikiki Sands Hotel for the month of March. Banquets and Catering Restaurants Kitchen staff wages Food Paper products Variable overhead Fixed overhead Flexible Budget March (in thousands ) * $ 660 1,820 (89) (700) (131) (79) (94) Actual Results March (in thousands ) * $ 670 1,812 (90) (702) (128) (82) (99) *Numbers without parentheses denote profit; numbers with parentheses denote expenses. Required: Based on Exhibit 12-4, prepare a March performance report and use the same data for year-to-date columns in your report. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable. Select "None" and enter "O" for no effect (i.e., zero variance). Enter your answers in thousands.)

Answer 1

Variance Year to Date March 10 Favorable 8 Unfavorble 8 Unfavorble 6 Unfavorble $ $ $ 15 Favorable 18 Unfavorble 13 Unfavorble 16 Unfavorble $ WAIKIKI SANDS HOTEL Performance Reports for March (in Thousands Flexible Budget Actual Results March Year to Date March Year to Date Food and Beverage Department Banquets & Catering $ 660 $ 1,920$ 670 $ 1,935 $ Restaurants $ 1,820 $ 5,570 $ 1,812$ 5,552 $ Kitchen -$ 1,093 -$ 3,261 $ 1,101 -$ 3,274 $ Total Profit $ 1,387 $ 4,229 $ 1,381 $ 4,213 $ Kitchen Kitchen Staff wages -$ 89 -$ 257 -$ 90-$ 259 $ Food and Beverage Department -$ 700-$ 2,120-$ 702 -$ 2,123 $ Paper products -S 131 -$ 381 -$ 128 -$ 376 S Variable Overhead -$ 79 $ 229 -$ 82 $ 236 $ Fixed Overhead -$ 94 -$ 274 $ 99 -$ 280 $ Total Expense -$ 1,093 -$ 3,261 -$ 1,101 -$ 3,274 $ Workings: Year to Date: Workings: Flexible Budget Workings: Actual Results Banquets & Catering [$1,260+$660) S 1,920 ($1,265+$670) $ 1,935 Restaurants [$3,750+1,820] $ 5,570 [$3,740+1,812] | $ 5,552 1 Unfavorble 2 Unfavorble 3 Favorable 3 Unfavorble 5 Unfavorble 8 Unfavorble $ $ $ S $ $ 2 Unfavorble 3 Unfavorble 5 Favorable 7 Unfavorble 6 Unfavorble 13 Unfavorble Kitchen Staff wages Food and Beverage Department Paper products Variable Overhead Fixed Overhead Total Kitchen Expenses: [-$168-$89) -$ [-$1,420-$700] -$ [-$250-$131] -$ (-150-79) -$ [-$180-$94) -$ -$ 257 [$169-$90] -$ 2,120 (-$1,421-$702] -$ 381 (-$248-$128] -$ 229 (-154-82] -$ 274 [-$181-$99] -$ 3,261 -$ 259 2,123 376 236 280 3,274

*If actual expenses exceeds budgeted expenses- Them, Unfavourable and Vice-versa.

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