MANAGERIAL ACCT (LL) W/ ACCESS CODE >C
4th Edition
ISBN: 9781323478684
Author: Braun
Publisher: PEARSON
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Textbook Question
Chapter 11, Problem 11.59SC
Calculate labor variances in a hotel (Learning Objective 3)
This case is a continuation of the Caesars Entertainment Corporation serial case that began in Chapter 1. Refer to the introductory story in Chapter 1 for additional background. (The components of the Caesars serial case can be completed in any order.)
Housekeeping is a significant cost in running a hotel; housekeeping includes daily cleaning of occupied guest rooms and guest bathrooms. Before the late 2015 renovation, the Roman Tower, formerly known as the Julius Tower, had 567 rooms. What follows is a table of selected hypothetical data regarding 2015 housekeeping costs in the Roman Tower:
| Data table for Roman Tower housekeeping usage5 | |
| STANDARD DATA – Roman Tower 2015 | |
| Standard hours per hotel room cleaning | 0.25 |
| Total standard housekeeping hours in 2015—Roman Tower | 36,399.25 |
| Standard average housekeeper wage rate per hour | $ 14.50 |
| Budgeted number of rooms to be cleaned in 2015 | 147,375 |
| ACTUAL DATA - Roman Tower 2015 | |
| Actual hours per hotel room cleaning | 0.30 |
| Total actual housekeeping hours in 2015—Roman Tower | 43,679.10 |
| Actual average housekeeper wage rate per hour | $ 13.50 |
| Actual number of rooms cleaned in 2015 | 145,597 |
5 All of these Roman Tower housekeeping assumptions are hypothetical and provided for educational use only.
Requirements
- 1. Calculate the Labor Rate Variance (LRV) for the Roman Tower housekeeping in 2015.
Hint: LRV = Actual Hours × (Actual Rate – Standard Rate). Answer the following questions about the LRV:
- a. Is the LRV favorable or unfavorable? How do you know?
- b. What are some possible reasons for this labor rate variance?
- 2. Calculate the Labor Efficiency Variance (LEV) for the Roman Tower housekeeping in 2015.
Hint: LEV = Standard Rate × (Actual Hours – Standard Hours). Answer the following questions about the LEV:
- a. Is the LEV favorable or unfavorable? How do you know?
- b. What are some possible reasons for this labor efficiency variance?
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Chapter 11 Solutions
MANAGERIAL ACCT (LL) W/ ACCESS CODE >C
Ch. 11 - (Learning Objective 1) Which of the following is...Ch. 11 - (Learning Objective 2) The direct material price...Ch. 11 - Prob. 3QCCh. 11 - Prob. 4QCCh. 11 - Prob. 5QCCh. 11 - (Learning Objective 4) Which of the following is...Ch. 11 - Prob. 7QCCh. 11 - (Learning Objective 6) Which of the following is...Ch. 11 - Prob. 9QCCh. 11 - (Learning Objective 7Appendix) Which of the...
Ch. 11 - Compute the standard cost of direct materials...Ch. 11 - Compute the standard cost of direct labor...Ch. 11 - Explain a direct material variance (Learning...Ch. 11 - Prob. 11.4SECh. 11 - Calculate direct material variances when the...Ch. 11 - Calculate direct labor variances (Learning...Ch. 11 - Prob. 11.7SECh. 11 - Prob. 11.8SECh. 11 - Calculate fixed overhead variances (Learning...Ch. 11 - Calculate and interpret fixed overhead variances...Ch. 11 - Prob. 11.11SECh. 11 - Calculate and interpret overhead variances...Ch. 11 - Record costing transactions (Learning Objective 7)...Ch. 11 - Record standard costing transactions (Learning...Ch. 11 - Identify ethical standards violated (Learning...Ch. 11 - Vocabulary (Learning Objectives 1, 2, 3, 4, 5, 6)...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Calculate and interpret direct material and direct...Ch. 11 - Calculate the material and labor variances...Ch. 11 - Record materials and labor transactions (Learning...Ch. 11 - Calculate the standard cost of a product before...Ch. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Compute and interpret overhead variances (Learning...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Data Set for E11-28A through E11-32A Country...Ch. 11 - Make journal entries in a standard costing system...Ch. 11 - Prepare a standard cost income statement (Learning...Ch. 11 - Calculate standard cost and gross profit per unit...Ch. 11 - Calculate the standard cost per unit (Learning...Ch. 11 - Calculate and explain direct material variances...Ch. 11 - Calculate missing direct material variables...Ch. 11 - Calculate and explain direct labor variances...Ch. 11 - Prob. 11.38BECh. 11 - Prob. 11.39BECh. 11 - Prob. 11.40BECh. 11 - Prob. 11.41BECh. 11 - Recognize advantages and disadvantages of standard...Ch. 11 - Calculate and interpret overhead variances...Ch. 11 - Prob. 11.44BECh. 11 - Prob. 11.45BECh. 11 - Prob. 11.46BECh. 11 - Prob. 11.47BECh. 11 - Prob. 11.48BECh. 11 - Prob. 11.49APCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Prob. 11.52APCh. 11 - Prob. 11.53APCh. 11 - Prob. 11.54BPCh. 11 - Comprehensive standards and variances problem...Ch. 11 - Comprehensive standards and variances problem...Ch. 11 - Work backward through labor variances (Learning...Ch. 11 - Determine all variances and make journal entries...Ch. 11 - Calculate labor variances in a hotel (Learning...
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