Chapter 10, Question 5 Sitabiso manages an executive dining room in an office bu

Question

Chapter 10, Question 5 Sitabiso manages an executive dining room in an office building of a major food manufacturin company. Her sales, on average, run between $17,000 and $21,000 per week. S use yardstick standards for labor to predict labor costs for varying sales levels. With these da can determine if variations in her expenses are due to changes in sales volume or other reasons such as waste or theft. She has compiled information from last year to help her predict her week abor costs. Using this information, help Sitabiso complete her yardstick standards for labor he has decided to ta, she ly (Spreadsheet hint: Use the ROUND function for "% Cost to Total Sales" column. Also, round to 3 decimal places, eg., 0.123 or 12.3%.) Yardstick Standards for Labor Total Sales: Labor Costs: $75,000 $900,000 Average Sales per Month: $84,000 Management Food Production 143,000 Service Sanitation 27,600 34,200 288,800 Total Weekly Sales Estimate % Cost to % Cost to Total Cost Total Sales $17,000 $18,000 $19,000 $20,000 $21,000 Category Management Food production Service Sanitation Total Chapter 10 Q 5

Explanation / Answer

% of Cost to Total Cost = Expense/ Total Cost *100 % of Cost to Total Sales = Expense/ TotalSales *100 Weekly Sales Estimate Formula Category % of Cost to Total Cost % of cost to Total Sales 17000 18000 19000 20000 21000 Management 84000/288800 *100 29.1% 84000/900000 *100 9.3% 1581 1674 1767 1860 1953 % of Cost to sales * Sales Food production 143000/288800 *100 49.5% 143000/900000 *100 15.9% 2703 2862 3021 3180 3339 % of Cost to sales * Sales Service 27600/288800 *100 9.6% 27600/900000 *100 3.1% 527 558 589 620 651 % of Cost to sales * Sales Sanitation 34200/288800 *100 11.8% 34200/900000 *100 3.8% 646 684 722 760 798 % of Cost to sales * Sales Total 100.0% 32.1% 5457 5778 6099 6420 6741

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