Hua Chang Resort has prepared the following budgeted amounts for

Hua Chang Resort has prepared the following budgeted amounts for its costs for 2017. Hua Chang has 32 luxury rooms available in the resort. It operates 365 days of the year.

Costs

Fixed amount

Variable cost per room per night

Wages

Electricity

Cleaning

Supplies

Water

Maintenance

$128000

24000

32000

8400

15600

4800

$6.00 

4.00

6.00

1.50

0.20

1.20

The actual occupancy rate for the year was 75%. The actual costs incurred for the year were as follows:

Wages

Electricity

Cleaning

Supplies

Water

Maintenance

$174000

49000

88000

18000

22800

16200

Required

Prepare a fixed budget performance report for 2017 by preparing a budget for each cost item based on its fixed costs plus the variable cost per room night multiplied by the actual number of room nights occupied. Compare this budget with the actual costs incurred.

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