2) Laundry labor - Spending variance analysis Client nights Pounds of laundry processed 11,900 156,600 Budgeted labor cost Actual labor minutes at budgeted labor rate Actual labor cost Budgeted labor rate per hour Actual labor rate per hour $ $ 9.00 10.20 Labor efficiency variance Budgeted labor rate per minute Actual labor rate per minute Labor rate variance Favorable or Unfavorable 0.15 0.17 Favorable or Unfavorable Budgeted labor minutes per pound Actual labor minutes per pound Rate per pound Activity variance Favorable or Unfavorable Spending Varance Favorable or Unfavorable Master budget 9,500 125.000 Flexible Budget 11,900 156,600 Actual 11,200 156, 600 $ 2.275.00 240 1.237.00 456.00 308.00 442.00 347.00 9,000.00 1.125.00 1.750.00 1,375,00 3,125.00 4. 000.00 1.250.00 21.625.00 11,275.00 $ 1.409.00 $ 2.192.00 $ 1.722.00 $ 3,125,00 S 4,000.00 $ $ $ $ $ $ $ S $ 12,512.00 1.875.00 2,500.00 2,200.00 2.750.00 5,000.00 478.00 625.00 1.000.00 $ 1250.00 3,348.00 U S 24,974.00 $ 4,114.00 e analysis actual Labor minutes at budgeted 11,900 Budgeted Actual labor cost 9.00 10.20 Labor efficiency Favorable or Unfavorable Favorable or Unfavorable A lot of my costs don't change, even if the number of pounds of laundry changes. I suppose laundry la- bor, supplies, water-related items, and maintenance vary with changes in pounds, but that's about all. Nevertheless, shouldn't my budget reflect those changes? Also, I hadn't planned for the fact that I was given a salary increase as of October 1- was I supposed to refuse it to help keep my budget in balance? Finally, I think it's important to note that I had to pay overtime to the staff because the department became inundated with laundry during the cold snap we had back in mid-December. Because of this, my average hourly rate for the whole three months was $10.20 instead of the $9.00 that was in my budget. In fact, and maybe this is a little picky, the average number of minutes it took my staff to wash a pound of laundry actually dropped from 48, which was my budget target, to 47 for the quarter. Somehow, even though it's pretty small, I think that should be taken into consideration