PERFORMANCE EVALUATION

Julie Miller supervisor of housecleaning for Hotel Minto, was surprised by her summary report for March given below Hotel Minto Housekeeping Performance Report For the month of March Actual $198,511 Budget $186,400 Variance %Variance 6.497% U $12,111 U Julie was disappointed. She thought she had done a good job controlling housekeeping labor and towel usage, but her performance report revealed an unfavorable variance of $12,111. She had been hoping for a bonus for her good work, but now expected a series of questions from her manager The cost budget for housekeeping is based on standard costs. At the beginning of a month, Julie receives a report from Hotel Minto's Sales Department outlining the planned room activity for the month. Julie then schedules labor and purchases using this information. The budget for the housekeeping was based on 8,000 room nights. Each room night is budgeted based on the following standards for vari : ious materials, labor, and overhead Shower supplies Towels Laundry Labor VOH FOH 3 bottles a $0.35 each 1 $2.25 10 lbs a $0.35 a lb h hour @ $14.00 an hour $7.00 per labor hour $6 a room night (based on 8,000 room nights With 8,900 room nights sold, actual costs and usage for housekeeping during March were: $9,311 for 26,500 bottles of shower supplies $17,502 for 7,900 towels $31,882 for 88,500 lbs. of laundry $60,200 for 4,350 $30,150 for total VOH $49,466 for FOH Required: You have been asked to re-evaluate Julie's performance. Prepare a report to Julie's boss demonstrating and explaining your findings. Including your suggestions for performance evaluation methods and measures in the future. Explain any better methods for her boss