You just received your monthly financial report for your 30 bed unit and found you were $10,000 over budget. A variance analysis revealed a favorable volume variance of $10,000, an unfavorable rate variance of $5000, and an unfavorable efficiency or quantity variance of $15,000. Which of the following conclusions is accurate?

1. You utilized more nurses than were required by the volume experienced

2. The nurses were so short staffed that you needed to pay a bonus

3. You were unable to supply the number of nurses needed for the given volume

4. The actual pay rate was less than you planned.