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As executive housekeeper of an Omni hotel in Orlando, Florida, you have been made aware by the hotel controller that the use of guest supplies has been unusually high for the past three months. To investigate the issue, you decide to take inventory on May 31. These are your findings:
Value of guest supplies on beginning inventory May 1st: $4,500
Value of purchases of guest supplies for the month of May: $800
Value of physical inventory taken on May 31st: $2,800
The rooms division revenue for the month of May was: $190,000
The budget percentage (expense / revenue) target for guest supplies was: 0.5%
•Find:
•a. Cost of guest supplies used in May
•b. Difference between cost percentage results in May and budgeted cost percentage.
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