Category: Accounting

“John Jones is the housekeeping manager of the do it right motel, a 100 room motel. The wage budget for his department is divided between fixed and variable expenses. The work standard for room attendants is 2 rooms per hour and the wage standard hourly rate is $10. The Variable wage budget for June 2014 for room attendants is $10,500 based on a wage rate of $10 per hour, and running a 70% occup. During June, room attendants worked 1,140 hours, cleaned 2,300 rooms, and the average hourly rate was $9.80”

Managerial Accounting

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