Question -Classify and Ascertain Food costs, Labour costs and Overhead Costs . Also find percentage to total sales of each cost. The following data is provided -
Sale food and beverage = 40000
Opening stock of food and beverage = 1000
Purchase of food and beverage = 15000
Closing stock of food and beverage = 500
Restaurant Rent = 5000
Fuel expenses = 500
Office expenses = 500
Allowance travelling = 1000
Employee provident fund = 1000
Wages and salary = 5000
Depreciation = 500
Repair and telephone = 500
Complimentary food served = 700
Staff food cost = 300
Solution
Total food cost calculation
Opening stock = 1000
Add: purchase = 15000
It will be = 16000
Less: closing stock = 500
Less : staff meal = 300
Less : complimentary meal = 700
It will be = 14,500
For food and beverage cost percentage calculation, we will use formula
Total f and b cost / Total sales * 100
14500 * 100/ 40000 = 36%
Total labour cost calculation
We will add wages and salary, travel allowance , employee provident fund , wages and salary which will give us _____amount. Now our formula will be ,
Total labour cost percentage ,
Total labour cost * 100/ Total sales
= _________%
Total overhead calculation,
We will add restaurant rent, fuel expenses, office expenses, depreciation, repair and telephone and calculate total overhead percentage using formulae,
Total overhead / Total sales * 100 which will be _________%
Now , Net profit will be = Total sale - Total cost
Net loss = Total cost - Total sales
Our total cost will be = food cost + Overhead cost + labour cost.
Gross profit will be = Total sale - Food cost
Gross profit % = Gross profit * 100 / Total sales.
Net loss percent = Net loss * 100/ Total sales
All our Hotel data are ready now including all expenses and profit/loss percentage of a month / year. We can reduce cost easily if we feel some cost is more and We also knew gross profit i.e Total profit after food and beverage sold and overhead and labour expense of our Hotel.
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