Steve is in trouble. He has never been a particularly strong labor cost control person. He likes to think of himself more as a "people person." His boss, however, believes that Steve must get more serious about controlling labor costs or he will make Steve an unemployed people person! Steve estimates his weekly sales, and then submits that figure to his boss, who then assigns Steve a labor budget for the week. Steve's operating results and budget figures for last month are presented below. Compute Steve's % of budget figures for both sales and labor cost. Also compute Steve's budgeted and actual labor cost percentages per week and for the five-week accounting period. Sales Week Budget 1 $2,500 2 3 4,080 4 3,100 5 2,600 Total 1,700 Labor Cost Labor Cost Percent % of % of Budget Budget Actual Budget Budget Actual $875 $900 595 630 1,224 1,300 1,085 1,100 910 980 Actual $2,250 1,610 3,650 2,800 2,400 OWN H G H 4 3,100 2,600 2,800 2,400 1,085 910 1,100 980 5 Total Do you feel that Steve has significant variations from his budgeted numbers? Why do you think Steve's boss assigned Steve a lower labor cost % goal during week 3? How do you feel about Steve's overall performance? What would you do if you were Steve's boss? If you were Steve? Type your answers in the box below. Answer: +