Conduct the following variance analysis and evaluate the results. Show the steps in your calculation. - Price variance - Volume variance - Total variance List any two (2) categories of comparisons that can be made on evaluating the average check which Sky Lounge achieved and explain each with an example to the Manager of Sky Lounge.
Conduct the following variance analysis and evaluate the results. Show the steps in your calculation. - Price variance - Volume variance - Total variance List any two (2) categories of comparisons that can be made on evaluating the average check which Sky Lounge achieved and explain each with an example to the Manager of Sky Lounge.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Background
Dream Resort is located on Lantau Island, which features two sister hotels and a number of
leisure facilities. A summary of the major services, facilities and catering outlets available in
the hotels are attached on page 8 and page 9 respectively.
You, as a management trainee in the Accounting Department of the resort, are recently
instructed to assist different operation departments in reviewing the financial data obtained,
sharing basic accounting knowledge and offering suggestions to improve the financial
performance of the department in the coming financial year.
Question 1
A. Below is the data obtained from Sky Lounge in March 2022 for conducting revenue
variance analysis:
Actual
Budget
No. of Covers
8,835
9,120
- Price variance
- Volume variance
- Total variance
Average Check
$279
$255
Conduct the following variance analysis and evaluate the results. Show the steps in your
calculation.
B. List any two (2) categories of comparisons that can be made on evaluating the average
check which Sky Lounge achieved and explain each with an example to the Manager of
Sky Lounge.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81613f83-a015-4a12-8b72-2d210ecc3d98%2F510eabd8-2034-4395-b0e3-3abdec6e0685%2Fias7uns_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Background
Dream Resort is located on Lantau Island, which features two sister hotels and a number of
leisure facilities. A summary of the major services, facilities and catering outlets available in
the hotels are attached on page 8 and page 9 respectively.
You, as a management trainee in the Accounting Department of the resort, are recently
instructed to assist different operation departments in reviewing the financial data obtained,
sharing basic accounting knowledge and offering suggestions to improve the financial
performance of the department in the coming financial year.
Question 1
A. Below is the data obtained from Sky Lounge in March 2022 for conducting revenue
variance analysis:
Actual
Budget
No. of Covers
8,835
9,120
- Price variance
- Volume variance
- Total variance
Average Check
$279
$255
Conduct the following variance analysis and evaluate the results. Show the steps in your
calculation.
B. List any two (2) categories of comparisons that can be made on evaluating the average
check which Sky Lounge achieved and explain each with an example to the Manager of
Sky Lounge.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education