Anal . Paste Copy 12AA . .A Wrap led Merge Center - BIU. Number $ . % - Format Painter Clipboard Alignment Number C62 X for 13 3 14 4 15 Total 7,500 8,000 30,300 4,110 4,450 6,680 1 18 Question a. 19 Use Jennifer's last month's operating results to calculate the following productivity 20 standards: labor cost percentage, sales per labor hour, labor dollars per guest served, 0 guests served por labor dollar, and guests served per labor hour. (Spreadsheet hint: Use the ROUND function to two decimal places for "Guests Served per Labor Hour' because you will use it in partc.) $12 $8 25 Average guest check 26 Average wage per hour 27 Total sales 28 Total labor cost Productivity Standard 31 Productivity Measurement 32 Labor cost percentage 33 Sales per labor hour 34 Labor dollars per guest served 35 Guests served per labor dollar 36 Guests served per labor hour 02 03 04 05 06 07 08 Type here to search 6th.ch07.student AutoSave Of H 2 File Home Insert X Cut View . Page Layout Formulas Data Review W 12A A == IU. 2. 0.A. Help Search Wrap Text Merge & Center - Number $ % Paste Copy - B 68 3 Format Painter Clipboard Alignment Number X for 39 Question b. 40 Jennifer has subdivided her employees into the following categories: meat production, 41 bakvery production, salad production, service, sanitation, and management. She wants to A develop a salos per labor hour standard for each of her labor categories. She believes this will help her develop future labor budgets based on forecasted sales. Help Jennifer calculate 43 this standard based on her current usage of labor hours 44 Labor Hours Sales per Labor Hour % of Labor Hours Used 25% 15% 10% 20% 20% 10% 100% S 45 Labor Category 46 Meat production 47 Bakery production 48 Salad production 49 Service 50 Sanitation 51 Management 52 Total US de 55 Question c. 56 Now that Jennifer has calculated her productivity standards, she would like to use them to 57 develop a labor hours budget for each day next week. She has forecasted 8.000 guests 50 and she wants to use the guests served per labor hour standard that was calculated in part soa. Use this information to develop a labor hours budget for Jennifer 80 Forecasted Number of Guests Served per 02 03 04 05 06 07 08 Labor Hours Type here to search View Help Search File Home Insert 2 Number Page Layout Formulas Data Review - 12 - AA == BI V H OA SEE Arial X Cut Lo Copy Format Painter Clipboard Wrap Text Merge & Center. Paste - $ . % Alignment Number C62 - X fx 52 Total 100% 55 Question c. Now that Jennifer has calculated her productivity standards, she would like to use them to 57 develop a labor hours budget for each day next week. She has forecasted 8,000 guests, s and she wants to use the guests served per labor hour standard that was calculated in part a. Use this information to develop a labor hours budget for Jennifer. 61 Day 621 632 6413 Forecasted Number of Guests Served per Labor Hours Guests Served Labor Hour Standard Budget 900 925 975 1,200 1,400 1,600 1,000 8.000 7 69 Total 02 03 04 05 06 07 08 0 E o Type here to search 6th.ch07.student version AutoSave Of A File Home Insert A Xan Page Layout Formulas Data Review ViewHelp Search === Copy Arial BIU .12 . A A .A.A. Paste Wrap Text Merge & Center. - Currency $ -% Number Format Painter Clipboard for Alignment D E F G H I J B25 X for A B C 10 follows 11 12 Six-Column Labor Cost Percentage 14 Unit Name: Mikel's Steak House Date: 3/1 - 3/7 Labor Cost% Today To Date 17 Weekday 19 2 20 3 214 225 Cost of Labor Today To Date $950 1.120 1,040 1,100 1,600 1.700 1,300 Sales Today To Date $2,520 2,610 2.720 2,780 3,530 4.100 3.910 23 6 247 25 Total 27 Mikel wants to keep his labor cost percentage at 37 percent. Given the results of his six-column 20 daily productivity report for the first week of March, wil he be able to achieve his labor cost percentage standard if he continues in the same manner for the remainder of the month? If not what actions can ho take to reduce both his foxed and variable labor related expenses? Answer. No, Mkol will not be able to achieve his 37% labor cost standard if he continues in the same manner for the remainder of the month since he is al 39.7%, currently Actions he can take to reduce labor-related expense are as follows: 35 Food 34 Category Actions 1 Improve productivity 2. Increase sales volume 3. Combine jobs to eliminate fored positions 02 03 04 05 06 07 08 Type here to search AutoSave Of H 2 : File Home Insert Page Layout Formulas Data Review View Help og == . -AA . A- 25 Wrap Text Merge & Cent Paste Ch Copy Format Painter Clipboard x Arial - 12 BIU - B O Font fic Alignment B11 1 Chapter 7, Question 5 2 3 Jeffrey operates a high-volume, fine-dining restaurant called the Baroness. His labor 4 productivity ratio of choice is guests served per labor hour. His standards for both servers 5 and bus persons are as follows: e Servers = 10 guests per labor hour Bus persons = 25 guests per labor hour On a busy day, Jeffrey projects the following volume in terms of anticipated guests. His 8 projections are made in one-hour blocks. Determine the number of labor hours Jeffrey 9 should schedule for each job classification for each time period 10 11 Servers: 2 guests per labor hour 12 Bus persons: guests per labor hour 13 14 Volume/Staff Forecasting for Saturday: The Baroness Forecasted Server Busperson Number of Guests Hours Hours 15 Time Served Needed Needed 16 11:00 - 12:00 85 17 12:00 - 1:00 175 18 1:00 - 2:00 95 19 2:00-3:00 30 20 3:00-4:00 25 21 4:00 - 5:00 - 45 View Help Se AutoSave Off A File Home Insert Page Layout Formulas Data Review X Cut Arial 12 AA == $ Format Painter B IU .A. Clipboard Font B11 : for Wrap Text Merge & Center Paste 46 Copy - Alignment 13 14 Volume/Staff Forecasting for Saturday: The Baroness Forecasted Server Busperson Number of Guests Hours Hours 15 Time S erved Needed Needed 16 11:00 - 12:00 17 12:00 - 1:00 175 18 1:00 - 2:00 19 2:00 - 3:00 30 1 20 3:00-4:00 25 % 21 4:00-5: 00 4 5 22 5:00-6:00 90 23 6:00-7:00 125 24 7:00 - 8:00 185 25 8:00 - 9:00 150 26 9:00 - 10:00 90 27 10:00 - 11:00 45 28 Total 1.140 30 How often in the night should Jeffrey check his volume forecast in order to ensure that he achieves his labor productivity standards and, thus, is within budget at the end of the evening? 33 Answer: Jeffrey should be checking his volume hourly. That way. If quests do not arrive as predicted, he can adjust his number of employees to save labor costs 02 03 04 05 06 07 08 0 Type here to search O to 6th.ch Page Layout Formulas Data Review View Help Search AutoSave Of H 2 File Home Insert X Cut Paste In copy Format Painter Clipboard = Arial BIU. - 12 . -A A .A. Wrap Text Merge & Center. E Percentage $ - % G14 . X for AB CDF 1 Chapter 7, Question 6 3 Steve is in trouble. He has never been a particularly strong labor cost control person. He likes to think of 4 himself more as a "people person. His boss, however, believes that Stove must get more serious about 5 controlling labor costs or he will make Steve an unemployed people personl Steve estimates his wookly sales 6 and then submits that figure to his boss, who then assigns Steve a labor budget for the week. Slove's operating 7 results and budget figures for last month are presented below 9 a. Compute Steve's % of Budget figures for both sales and labor cost. Also, fill in the columns for Budget and 10 Labor Cost % per week for the five-wook accounting period 12 Sales Labor Cost Labor Cost % % of % of 13 Week Budget Actual Budget Budget Actual Budget Budget Actual $2,500 $2,250 $875 $900 15 2 1.700 1.610 595 630 163 4,080 3,650 1,224 1,300 174 3,100 2,800 1,085 1.100 18 5 2,600 2,400 910 980 19 Total 20 21 Do you feel that Steve has significant variations from budget? Why do you think Steve's boss assigned 22 Steve a lower labor cost percentage goal during week 3? How do you feel about Steve's overall 23 performance? What would you do if you were Steve's boss? If you were Steve? Answer: Steve's labor cost percentages are significantly higher than budgeted in anticipation of negative performance by Steve, Steve's boss probably lowered this budgeted labor cost percentage in week three in O case his actual labor cost percentages in the previous two weeks are high. This might help Steve to get back 27 on track, if needed. Steve and his boss noed to observe what is going on during the workday in operations. 28 Steve may also need more guidance on how to schedule, he may not be setting expectations high enough 20 for his omoloveos 02 03 04 05 06 07 08 Type here to search A X Cut Paste Copy - 2 Wrap Text Merge & Center - Arial 12AAEEE B I U. 8.A. E Font te format Painter cobrard Alignment G17 : X for 2 1 Chapter 7, Question 7 E 3 Jordan is the new western regional manager for the Lotus House, an Asian buffet 4 restaurant chain. Hor territory consists of 12 stores in four states. Last week, she received the following data from her stores Compute Jordan's labor cost by store, by 5 state, and for her region. Cost of Labor Labor Cost % $91,000.00 106,500.00 83,500.00 $34,500.00 38,750.00 31,500.00 7 8 California 9 Store 1 10 Store 2 11 Store 3 12 Total 13 14 Oregon 15 Store 1 16 Store 2 17 Store 3 18 Total $36,800.00 61,000.00 52,000.00 $12.250.00 18.750.00 17.500.00 20 Washington 21 Store 1 22 Store 2 23 Store 3 24 Total $47,500.00 46,500.00 45,500.00 $14,750.00 15,000.00 15,000.00 26 Nevada *Q2 ' n ons 26172706 Type here to search RTL . 0.A. Merge & Copy - 3 Format Painter Clipboard Font Alignment G17 - X fr LE AA 26 Nevada 27 Store 1 28 Store 2 29 Store 3 30 Total 31N 32 Region $53,000.00 56,000.00 55,100.00 $17,250.00 18,500.00 17,250.00 34 Can Jordan compute the average labor cost percentage for her region by summing the labor cost percentages of the four states and dividing by four? Why or why not? How is the overall labor cost percentage for her region computed? 1 30 Answer: No, she cannot compute a simple average, she must computea weighted average. If she simply takes the labor cost percentages of the four 39 states and divides them by four, she will get 33 51%, which is inaccurate 40 Her overall labor cost percentage of the region is computed by dividing total 41 labor cost for the region by total sales for the region. Q2 Q3 Q4 as 06 07 08 Type here to search 6th.ch student version - Excel AutoSave OB 8 2 . File Home Insert Page Layout Formulas Data Review View Help Search G = = Gene Paste Copy - Arial BIU. :12 A A .0.A. E Wrap Text Merge & Center. Conditional 3 Format Painter E . $% *8*3 Formatting 125 iX A B C D E F G Tuys a poor coor wings, annos mormo r yuges, 4 banquet space of St Andrews is completely booked. That is good news, but a lso finds that Alisha, the 5 one full-time (paid $20.00 per hour) employee he has utilized as a supervisor for the banquet area, is 6 averaging 15 hours overtime per week Ravis considering three alternative courses of action 71 the sun and pay Alisha for 55 hours per week 2. Create a salaried position, schedule the employee who hold the position 55 hours per week, and pay that individual $50,000 per year 3. Split the job into two part-time positions of 30 and 25 hours per week and pay these employees $22.50 10 per hour 11 Assume the following -Overtime is paid 15twes the normally and rate 12. The operation's benefit package for part-time employees is 20 percent of the wages paid to them. 13 . The operation's benefit package for full time employees is 35 percent of the wages paid to them. - Altime employees receive two weeks paid vacation per year Hours Worked Pay per Pay per Hour Week Weeks in Pay before a Year Benefits Annual Pay with Benefits Benefits Alternative 1 Total Alternative 2 23 Alternative 3 Total 02 03 04 05 06 07 08 I e Type here to search