Labor variance analysis formulas

VV= BR(BT-ATAO)

RV= BT(BR-AR)

EV=BR(ATAO-AT)

R-TV=(BT-AT)(BR-AR)

Budgeted rooms sold: 5,000. Budgeted hourly pay rate for room attendants: $4.50. Work standard: clean 2 rooms per labor hour. Actual rooms sold: 5,400. Actual average hourly pay rate: $4.60. Actual hours attendants worked: 2,600

1. Calculate the total labor cost variance

2. Calculate the volume variance, indicating whether it is favorable or unfavorable

3. Calculate the rate variance, indicating whether it is favorable or unfavorable

4. Calculate the efficiency variance, indicating whether it is favorable or unfavorable

5. Comment on the performance of the head housekeepers performance.