Ed Koehler started Great Southern Furniture five years ago to assemble prefabric

Question

Ed Koehler started Great Southern Furniture five years ago to assemble prefabricated bedroom furniture for large hotel chains. Hotels purchased furniture (beds, night stands, and chest of drawers)from manufacturers who ship the furniture to the hotels unassembled. Koehler sends a site supervisor and a small crew of employees to the hotel. The site supervisor 1st hires employees along with small crew of Great Southern employees to help assemble the furniture and the trains them. The locally hired employees along with the small crew of Great Southern employees help assemble the furniture at the hotel. This significantly reduces the shipping charges and damage to the furniture. Before send a crew to the site, Koehler has a crew in his office assemble several sets to make sure there are no problems and also to estimate the expected time required to assemble the particular furniture.
The 500-room Hyatt open in Tampa and Koehler sends a crew to assemble the 500 bedroom sets. He establishes that 4.5 hours are required to assemble one complete room and estimated cost per hour is $22. Upon completing the job, the crew reports they has total wages of $49,693 for 2,170 hours worked.
Required:
a. Write a report evaluating the performance of the crew at the Hyatt in Tampa.

Explanation / Answer

The performance of the crew was satisfactory & rather good because the time taken to assemble was only 2170hrs as against the budgeted (500*4.5) ie 2250 hrs thereby saving much of the time. In respect of the cost also there has been an increase of only 49693 from 49500 (2250*22). Thus the efficiency was remarkable. Please rate the answer as lifesaver. Thank u in advance :) God Bless u :)

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