14.2 The 75-seat Safari Restaurant s weekly and per meal period seat turnover is as depicted in the following table:

Transcription

1 14.1 The Simba snack bar has 160 seats and operates 6 days every week excluding Mondays. The seat turnover and average food service cheques per meal period and days are as shown below: Seat turnover Average food service cheque Breakfast Lunch Dinner Breakfast Lunch Dinner Tuesday Wednesday Thursday Friday Saturday Sunday The snack bar generates extra revenues from the vending machines installed by external companies and for which they receive annual sums of 5, You are requested to determine the operating budget of the snack bar and show the details per meal period. Assume that the first day of the year is a Monday and there are 365 days in the year The 75-seat Safari Restaurant s weekly and per meal period seat turnover is as depicted in the following table: Seat turnover Breakfast Lunch Dinner Monday Tuesday Wednesday Thursday Friday Saturday The average food service cheques per the different meal periods are 6.50 for the breakfasts, for the lunches and for the dinners. Determine the operating budget for the month of June 2010 knowing that the first day of the month was a Tuesday The management of the Hilltop Rest House are in the process of preparing their budget for the next year using flexible budgeting at four different levels of sales. The levels of sales are 65%, 75%, 85%, and 95% of their full capacity. At full capacity their revenues are 7,300,000. Use the following to draw up the flexible budget of the Hilltop Rest House for the next year at the four levels of activity: Full capacity 7,300, Cost of sales 24.00% Fixed salary element 450, Variable salary element 28.00% Sales and marketing 2.00% POM&UC 1.50% Depreciation 265, Taxes (pre-tax) 30.00% Basic Management Accounting for the Hospitality Industry M. N. Chibili Page 1

2 14.4 Determine the causes of the following variance: Budget Actual Variance Food sales 48,000 38,000 10,000 Unfavourable Information from manager s budget working papers: Sales forecast computation Average cheque Covers 4,000 Current month s statistics reported from the accounting department: Average cheque Covers 3, Use the following information to prepare the rooms department condensed annual budget of the Hapjesland Hotel for 2012 assuming that it operates all 366 days of the year. Estimated occupancy percentage 82.00% Rooms 1,400 ADR Fixed salary component 1,100, Variable salary component 67.50% Other operating expenses per room occupied Determine the causes of the following quarterly variance: Budget Actual Variance Room sales 980,000 1,020,000 40,000 Favourable Information from manager s budget quarterly working papers: Sales forecast computation ADR Rooms 12,250 Current quarter s statistics reported from the accounting department: ADR Rooms sold 13,600 Basic Management Accounting for the Hospitality Industry M. N. Chibili Page 2

3 14.7 The Salt & Pepa Restaurant has 160 seats and operates from Monday through Saturday for lunch and dinner, while it operates on Sundays and other feast days, a dinner-only service. For the coming year, Sundays and feast days make a total of 58 days. Expected activities for the next year are as follows: Seat turnover Average food service cheque Lunch - weekdays Dinner - weekdays Dinner - Sundays and feast days The Salt & Pepa Restaurant has a banquet room for private parties and estimates that it will produce 925,000 in food revenues. Beverage revenues are distributed as follows: Lunch weekdays 15% of related revenues Dinner weekdays 32% of related revenues Dinner - Sundays and feast days 42% of related revenues Private parties 48% of related revenues The overall food cost percentage is 31%, and the beverage cost percentage is 19%. For the next year the fixed element in salaries will amount to 425, while the variable salary component is 17% of total revenues. The other operating costs and the fixed costs are distributed as follows: China, glassware, silver, linen, and uniforms 1.45% on all revenues Laundry and dry cleaning Operating supplies 2.50% on all revenues Music and entertainment 1.60% on all revenues Property operations and maintenance Training 2.00% on all revenues Telecommunications 1.75% on all revenues Other operating expenses Administration and general 128, Contract services 8, Depreciation 54, Insurance 5, Licenses 6, Rent 32, Income tax 28.00% You are now asked to use the available information and establish the budgeted income statement of the Salt & Pepa Restaurant. Basic Management Accounting for the Hospitality Industry M. N. Chibili Page 3

4 14.8 Use the following information to prepare the condensed annual budget of the Freezeland Motel for 2011 assuming that it operates all 365 days of the year. Estimated paid occupancy percentage 75.00% Double room occupancy percentage 60.00% Single room occupancy percentage 40.00% Rooms 120 ADR Double room price margin on single room Rooms revenue percentage 90.00% Other revenues percentage 10.00% Yearly fixed costs per room Variable room costs per room occupied 6.75 Other operating expenses Administration and general 540, Depreciation 86, Insurance 53, Interest 65, Property operations and maintenance 54, Property taxes 36, Sales and marketing 22, Utilities 154, Income tax 28% 14.9 Use this information from the rooms department of the Bilgaard Passage to establish yearly flexible budgets at the following levels of activity: 50%, 60% and 70%. Assume a year of 365 days. Number of rooms 60 ADR Monthly fixed salary component 15, Variable salary components per room sold Payroll taxes (on fixed and variable salaries) 12.50% Fixed employee benefits per month 3, Variable employee benefits per room sold 1.50% Reservations costs per room sold 2.50 Commissions (on revenues) 2.50% Linen (on revenues) 1.75% Supplies (per room sold) 6.25 Fixed other monthly expenses 2, Variable other expenses (on revenues) 4.00% Basic Management Accounting for the Hospitality Industry M. N. Chibili Page 4

5 14.10 F & E Yeboah Management Consultants have recently started managing the Gelder Sweets Hotel and they have asked you - as the rooms department management trainee - to prepare a five-years long term budget of which the details of the current year are as follows: Type Quantity Occupancy % ADR Total Singles 70 70% ,235, Doubles % ,665, Suites 40 85% ,482, Total 12,382, Payroll and related expenses Annual fixed salary component 858, Variable salary component (on room sales) 14.00% Other expenses (on revenues) Commissions 2.50% Laundry 1.75% Operating supplies 6.00% Linen 1.75% Uniforms 1.00% All other expenses 3.50% Other information: Occupancy for each of the room types will rise each year by 1% (such as Year 1 will be 71% for singles) The ADR will increase by 2.5 each year (such as Year 2 will be 180 for doubles) The fixed salary component will increase each year by 5% (on the figure of the previous year) The variable salary component will increase by 3% each year (on the figure of the previous year) All the other expenses categories will rise each year by 0.5% (on the figure of the previous year). Basic Management Accounting for the Hospitality Industry M. N. Chibili Page 5