4. Finance and Accounting

Budgets And Forecasting — Quiz

Test your understanding of budgets and forecasting with 5 practice questions.

Practice Questions

Question 1

When preparing a flexible budget, the budgeted variable cost for housekeeping is \$18 per occupied room based on a budget of 500 rooms. If actual occupancy is 600 rooms, what is the flexible budget variable cost for housekeeping?

Question 2

Using single exponential smoothing with smoothing constant \$\alpha=0.3\$, last period's forecast was 200 room nights and the actual observed room nights were 240. What should the next period's forecast be?

Question 3

In a hotel laundry operation, the budgeted labor hours are 400 at a standard rate of \$15 per hour. Actual labor hours used were 420 hours. What is the labor efficiency variance and its nature?

Question 4

A hotel uses a 3-month moving average to forecast room bookings. March had 100 bookings, April 120, and May 110. What is the forecast for June?

Question 5

For a hotel's banquet service, the budgeted contribution margin per event is \$200. If the hotel budgeted 50 events but actually hosted 60 events, what is the sales volume variance?