Part IVGaurav's Restaurant is analyzing an increase in its labour cost. Youhave been given the following information on the average hourlyrate for its front-of-house positions and an excerpt from itsbudget and actual results for the month.ServerBusserHostPositionRequiredServerBusserHostPositionActualTotal Cost$11,9632,3201,615Average Rate$16.00$15.00$18.00Hours Worked72516095BudgetTotal Cost$12,000$2,250$1,620Hours Worked75015090a) Calculate the cost variance for each position.b) Calculate the quantity variance for each position.c) Calculate the total variance for each position.

Name: Part IVGaurav's Restaurant is analyzing an increase in its labour cos
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Description: Part IVGaurav's Restaurant is analyzing an increase in its labour cost. Youhave been given the following information on the average hourlyrate for its front-of-house positions and an excerpt from itsbudget and actual results for the month.ServerBuss

1. Labour Cost Variance : ( as per question ; Total variance )> Finds the difference between…

Answered: Required a) Calculate the cost variance…

Business

Accounting

Required a) Calculate the cost variance for each position. b) Calculate the quantity variance for each position. c) Calculate the total variance for each position.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Part IV
Gaurav's Restaurant is analyzing an increase in its labour cost. You
have been given the following information on the average hourly
rate for its front-of-house positions and an excerpt from its
budget and actual results for the month.
Server
Busser
Host
Position
Required
Server
Busser
Host
Position
Actual
Total Cost
$11,963
2,320
1,615
Average Rate
$16.00
$15.00
$18.00
Hours Worked
725
160
95
Budget
Total Cost
$12,000
$2,250
$1,620
Hours Worked
750
150
90
a) Calculate the cost variance for each position.
b) Calculate the quantity variance for each position.
c) Calculate the total variance for each position.

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