For this question, i got -720 as my answer. Would this be favorable or unfavorab

Question

For this question, i got -720 as my answer. Would this be favorable or unfavorable?
A popular vacation hotel bases ts budgets on occupancy days.(An occupancy day represents room rented out for one day) The hotel's static budget for June appears below day represents a room rented out for one day) Budgeted number of occupancy-days Budgeted variable costs: 2,900 Supplies (@$260 per occupancy-day) Laundry (@$8.60 per occupancy-day) $7,540 24.940 32.480 Total variable cost Budgeted fixed costs: Wages and salaries Occupancy costs 10.440 30,450 40.890 $73370 Total fixed cost Total cost Using the cost formulas above, what would be the flexible budget amount of total variable cost at the activity level of 4,100 occupancy-days per month? $45.920 O $42 920

Explanation / Answer

Supplies 2.6 Laundry 8.6 Variable Cost per unit 11.2 Total Variable Cost for 4100 units *11.2 45920 Standared rate per unit =$ 20.40 per feet Actual cost per unit =23760/1200 =19.80 per feet Price variance (20.40-19.80)*1100 =660 F

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