Homework ch 10 - 1600 (56 60) = $ -6,400 (uf) 3. What is...

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Chapter 10 homework (Similar to Discussion Question 3) ABC Hotel Budgeted to sell 300 rooms at an ADR of $60 for a week. The actual rooms sold during the week were 350 and the actual ADR achieved was $56. 1. What is the total budget variance (total revenue variance)? 56 x 350 – 60 x 300 = 19,600 – 18,000 = $1,600 (f) 2. What is the price variance (PV)? Is the PV favorable or unfavorable?
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Unformatted text preview: 1600 (56 60) = $ -6,400 (uf) 3. What is the volume variance (VV)? Is the VV favorable or unfavorable? 60 (350 300) = $3,000 (f) 4. What is the price-volume variance (P-VV)? Is the P-VV favorable or unfavorable? (56 60) x (350 300) = (-4 x 50) = $-200 (uf)...
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