Problem 1 Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of regional builders Home buying and therefore mortgage processing is a highly seasonal business, and requires temporary staff during busy processing periods Holmes hires staff on a monthly basis from two different temporary staffing firms Professional Temps (PT) and Support on Demand (SD) In June, Empire hired 14 staff members from PT and 10 from SD PT is a more established firm and SD is a newly organized firm in the staffing market Holmes has compiled the following information for June Budgets for June PT staff SD staff Budgeted hourly rate $50 $45 Budgeted time per app (hours) 1 2 1 4 Actual results for June PT staff SD staff Actual hourly rate $52 $47 Actual time per app (hours) 1 4 1 2 Number of actual apps completed 2,604 1,600 Questions Determine the labor rate and efficiency variances for (a) the 14 PT staff and (b) the 10 SD staff hired in June Comment on the efficiency of the PT and SD staff hired by Empire Mortgage NOTE this has been answered by someone on this site but made no sense to me, there is zero explanation just math Please explain what you are doing They are saying the numbers than unfavorable but what are you comparing this against

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Problem 1 Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of regional builders. Home

Problem 1

Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of regional builders. Home buying and therefore mortgage processing is a highly seasonal business, and requires temporary staff during busy processing periods. Holmes hires staff on a monthly basis from two different temporary staffing firms - Professional Temps (PT) and Support on Demand (SD). In June, Empire hired 14 staff members from PT and 10 from SD. PT is a more established firm and SD is a newly organized firm in the staffing market. Holmes has compiled the following information for June:

Budgets for June	PT staff	SD staff
Budgeted hourly rate	$50	$45
Budgeted time per app. (hours)	1.2	1.4
Actual results for June	PT staff	SD staff
Actual hourly rate	$52	$47
Actual time per app. (hours)	1.4	1.2
Number of actual apps completed	2,604	1,600

Questions:

Determine the labor rate and efficiency variances for (a) the 14 PT staff and (b) the 10 SD staff hired in June.
Comment on the efficiency of the PT and SD staff hired by Empire Mortgage

NOTE-- this has been answered by someone on this site but made no sense to me, there is zero explanation just math. Please explain what you are doing. They are saying the numbers than unfavorable but what are you comparing this against?