Assignment Activity 6

Take a look at the budget and the actual gures in the following budget completed for the year 2018/19:

Le Tatin Caf Budget 2018/19

Income Budget Actual Variance % Unfavourable Favourable

Breakfast - food $364,000 $395,522 8.65% F

Breakfast - Bev $26,500 $31,200 17.73% F

Lunch - Food $525,000 $425,336 -18.98% U

Lunch - Bev $157,500 $110,988 -29.53% U

Dinner - Food $630,000 $745,369 18.31% F

Dinner - Bev $219,000 $225,120 2.79% F

Functions - Food $456,000 $788,300 72.87% F

Functions - Bev $136,800 $220,367 61.08% F

Total $2,614,800 $2,942,202

Expenses

Purchases Food $664,000 $753,448 13.47% U

Purchases Bev $162,000 $199,810 23.33% U

Wages $993,600 $1,059,181 6.60% U

Superannuation $91,910 $97,974 6.59% U

Rent $80,000 $80,000 0 F

Marketing $25,000 $22,300 -10.80% F

Waste disposal $3,200 $3,500 9.37% U

Office supplies $4,500 $6,100 35.55% U

WorkCover $18,000 $19,000 5.55% U

1.Calculate the variances in percentage terms and state if they are favorable of unfavorable (to two decimals placed.)

2.Take a close look at the wages and show calculations to show of the actual gures are favorable to the budget estimates or unfavorable to budget estimates when compare to sales.

3.Take a close look at the food cost and show calculations to show if the actual gures are favorable to the budget estimates or unfavorable to budget estimates or when compare to sales.

4.Take a close look at the beverage cost and show calculations to show if the actual gures are favorable to the budget estimates or unfavorable to budget estimates when compare to sales.