Calculate a teller efficiency variance for the 1100 to 100

Reference no: EM13600783

Banking application Pioneer State Bank developed a standard for teller staffing that provided for one teller to handle 12 customers per hour.

During April, the bank averaged 57 customers per hour and had six tellers on duty at all times. (Relief tellers filled in during lunch and rest breaks.) The teller compensation cost is $15 per hour. The bank is open eight hours a day, and there were 22 working days during April.

Required:

a. Calculate the teller ef?ciency variance during April expressed in terms of number of tellers and cost per hour.

b. Now assume that in April, during the 11:00 A.M. to 1:00 P.M. period every
day, the bank served an average of 84 customers per hour. During the other six hours of the day, an average of 48 customers per hour were served.

1. Calculate a teller ef?ciency variance for the 11:00 to 1:00 period expressed in terms of number of tellers per hour and total cost for the month.

2. Calculate a teller ef?ciency variance for the other six hours of the day expressed in terms of number of tellers per hour and total cost for the month.

3. As teller supervisor, explain the signi?cance of the variances calculated in (1) and (2), and explain how you might respond to the uneven work ?ow during each day.

Reference no: EM13600783

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