Answer to Class Problem - The Changing Business environment

Answer to Class Problem - The Changing Business environment...

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ACII Class Problem The Changing Business Environment 1. Mi Casa is a housekeeping company in Brownsville, Texas. The corporation is owned 100 percent by Jean Kline. Jean plans to develop the company into a multimillion-dollar company as the demand for housekeeping services in Brownsville is increasing at a rapid pace as the community grows. Currently, Jean has three housekeepers who each work a 40-hour week. Over the past four weeks, the actual hours worked were as follows: Week 1 Week 2 Week 3 Week 4 Tota l Housekeepers 136 140 145 145 566 Jean is concerned with the hours worked. Analyze the activity for the four weeks by preparing a table showing the estimated hours, actual hours, and the hours under (or over) estimate. Based on the information in your table, does Jean have reason for concern? If so, what could some
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Unformatted text preview: of the possible reasons be for the hours spent? Correct Answer: Week Estimated Hours Actual Hours Hours Under (or Over) Estimate 1 120 136 (16) 2 120 140 (20) 3 120 145 (25) 4 120 145 (25) Totals 480 566 (86) Yes, Jean has reason for concern as the hours increased each week, amounting to a total of 86 hours over the estimated amount. Possible reasons could include the following: The employees are new and still learning. Jean underestimated how much time is really required to clean the houses. The employees are doing more work than Jean contracted with the homeowner for. One employee may be spending more time than the others due to illness or some other reason....
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This note was uploaded on 02/02/2012 for the course ECON 125 taught by Professor Ho during the Summer '10 term at San Diego State.

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