Copy of Assignment 5 Template - BOS 324

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1	Assignment 5 Template	Hint: Complete Rows 2-5. Once you do, amounts will populate in the static and actual budget columns.
2	Company Name	Marriott Hotel
3	Output Description:	Hotel Rooms Booked
4	Input 1 (Variable) Description:	Housekeeping Labor Hours
5	Input 2 (Variable) Description:	Meals
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7		Static Budget	Static Budget Rates	Actual	Actual Rates	Flexible Budget	Flexible Budget Rates
8	Units
9	Output	426,324	input/output	330,122	Input/output	330,122
10	labor hours	773,009	1.81	912,615	2.76	598,576	1.81
11	meals	221,452	0.52	696,073	2.11	171,480	0.52
12			$ / output		$ / output
13	Revenues	$126,360,000	$296.39	$4,780,000	$14.48	$97,846,276	$296.39
14	Costs		$ / input		$ / input
15	labor hours	$46,519,300	$60.18	$502,356,000	$550.46	$36,022,003	$60.18
16	meals	$87,743,600	$396.22	$51,192,000	$73.54	$67,943,847	$396.22
17	Rent (Fixed)	$20,150,600	N/A	$62,565,800	N/A	$20,150,600	N/A
18	Profit	-$28,053,500		-$611,333,800		-$26,270,174
19						*flexible budget is projected costs if we had the right units of output (correct amount of rooms)
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22		static total in $ - actual total in $	*its not favorable/unfavorable based on +/-, it depends on whether it is decreasing or increasing income	static total in $ - flexible total in $ favorable if the flexible budget income is higher than static	*its not favorable/unfavorable based on +/-, it depends on whether it is decreasing or increasing income	actual total in $ - flexible total in $	*its not favorable/unfavorable based on +/-, it depends on whether it is decreasing or increasing income		*its not favorable/unfavorable based on +/-, it depends on whether it is decreasing or increasing income		*its not favorable/unfavorable based on +/-, it depends on whether it is decreasing or increasing income
23		Static Budget Variance	Favorable/ Unfavorable	Volume Variance	Favorable/ Unfavorable	Flexible Budget Variance	Favorable/ Unfavorable	Price or Spending Variance	Favorable/ Unfavorable	Efficiency or Overhead Variance	Favorable/ Unfavorable
24	Revenues	-$121,580,000	unfavorable	-$28,513,724	unfavorable	$93,066,276	unfavorable	-$93,066,276.35	unfavorable	N/A
25	Costs
26	labor hours	$455,836,700	unfavorable	-$10,497,297	favorable	-$466,333,997	unfavorable	$293,468,747.15	unfavorable	-$18,898,717.28	unfavorable
27	meals	-$36,551,600	favorable	-$19,799,753	favorable	$16,751,847	favorable	-$55,332,496.56	favorable	-$207,853,846.57	unfavorable
28	Rent (Fixed)	$42,415,200	unfavorable	$0	no variance	-$42,415,200	unfavorable	$42,415,200	unfavorable	N/A
29	Total Variance	-$583,280,300	unfavorable	$1,783,326	favorable	$585,063,626	unfavorable	-$280,551,450.60	unfavorable	$226,752,563.85	unfavorable
30		*static budget tells us if something is wrong with the budgets			*issue isn't with the amount of rooms sold					*ignore signs up above since everything should be absolute value
31		Bad things - not selling enough rooms from volume variance, from flexible budget variance know that rates are off for labor, spending too much per hour
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