Compute rate variance and efficiency variance for drivers. What do they tell you?

TOWN OF BELLINGTON Exhibit 1. Performance Report - Snow Removal Department October-December (Over) Under % (Over) Under Budget Budget Actual Budget 20) (20) Snow days (a) Cubic miles of snow (b) Costs 10 1,250 12 1,500 (250) $(6,675) (750) (750) (825) (3,000) (1,000) Drivers (c) Supplies (d) Fuel Maintenance (e) Supervisor's salary Allocated administrative costs ( Equipment depreciation (g (37) (43) (20) 0 $18,000 $24,675 1,125 1,750 1375 15,000 4,000 1,250 1,875 2,500 2.200 18,000 5,000 1,250 Total $42,500 $55,500 (13,000) Notes: a. Days when there was at least one inch of snow. Less than that, and no snow plowing took place b. Computed, for each storm, by multiplying the depth of snowfall (according to the official measure by the town clerk) by the miles of roadways to be plowed Drivers were paid hourly, not by the mile. However, the number of hours needed to clear the roadways depended to a great extent on cubic miles of snow. For example, an inch of snow from a relatively light storm would take less time to plow, than six inches of snow from a moderate storm. The amount of time needed to clear the road ways also depended on the length of the storm. For example, if a storm deposited six inches of snow in a few hours, the drivers would wait until the storm had ended, and then clear the roads with one pass of the plows. However, if a storm deposited six inches of snow over, say, a 24 hour period, two or more passes of the plows would be needed to keep the roads clear. When a driver worked more than 8 hours in a 24-hour period, he/she was paid a 50 percent overtime premium for the additional hours c. d. Mainly sand and salt. Office and other administrative supplies were part of the administrative cost allocation Was almost directly related to miles driven. Thus, a 24 hour storm, requiring several passes, maintenance costs than a storm of only a few hours, even if the cubic miles of plowed snow were the same. would lead to more e. f. Based on the town's full cost accounting system. The system used different allocation bases for different town services, such as custodial work, administrative salaries and supplies, and repairs and maintenance. Exclusively for the snow plows. The department had no other assets to be depreciated g. TOWN OF BELLINGTON Exhibit 1. Performance Report - Snow Removal Department October-December (Over) Under % (Over) Under Budget Budget Actual Budget 20) (20) Snow days (a) Cubic miles of snow (b) Costs 10 1,250 12 1,500 (250) $(6,675) (750) (750) (825) (3,000) (1,000) Drivers (c) Supplies (d) Fuel Maintenance (e) Supervisor's salary Allocated administrative costs ( Equipment depreciation (g (37) (43) (20) 0 $18,000 $24,675 1,125 1,750 1375 15,000 4,000 1,250 1,875 2,500 2.200 18,000 5,000 1,250 Total $42,500 $55,500 (13,000) Notes: a. Days when there was at least one inch of snow. Less than that, and no snow plowing took place b. Computed, for each storm, by multiplying the depth of snowfall (according to the official measure by the town clerk) by the miles of roadways to be plowed Drivers were paid hourly, not by the mile. However, the number of hours needed to clear the roadways depended to a great extent on cubic miles of snow. For example, an inch of snow from a relatively light storm would take less time to plow, than six inches of snow from a moderate storm. The amount of time needed to clear the road ways also depended on the length of the storm. For example, if a storm deposited six inches of snow in a few hours, the drivers would wait until the storm had ended, and then clear the roads with one pass of the plows. However, if a storm deposited six inches of snow over, say, a 24 hour period, two or more passes of the plows would be needed to keep the roads clear. When a driver worked more than 8 hours in a 24-hour period, he/she was paid a 50 percent overtime premium for the additional hours c. d. Mainly sand and salt. Office and other administrative supplies were part of the administrative cost allocation Was almost directly related to miles driven. Thus, a 24 hour storm, requiring several passes, maintenance costs than a storm of only a few hours, even if the cubic miles of plowed snow were the same. would lead to more e. f. Based on the town's full cost accounting system. The system used different allocation bases for different town services, such as custodial work, administrative salaries and supplies, and repairs and maintenance. Exclusively for the snow plows. The department had no other assets to be depreciated g