Use the following information to answer the next two questions. The Sydney Harbour Bridge View Hotel predicted $30,000 in variable housekeeping costs and room revenue of $240,000 from 3,000 room sales in its static budget for March. The hotel actually sold 3,300 rooms and incurred $32,000 in variable housekeeping costs in March.
-What is the Sydney Harbour Bridge View Hotel's flexible budget variance for variable housekeeping costs in March?

Question

Quizplus · Accepted Answer

The flexible budget for variable housekeeping costs, based on 3,300 rooms, would be $33,000 (calculated as $30,000/3,000 rooms * 3,300 rooms). The actual cost was $32,000, resulting in a $1,000 favourable variance.

Use the Following Information to Answer the Next Two Questions