Problem -
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 multi-million-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 Total
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.
1. Based on the information in your table, does Jean have reason for concern?
2. If so, what could some of the possible reasons be for the hours spent?