As the new suppliers are supplying the products on the same price as the Hotel used to get earlier. For the month of August and September, the meat price still remains 35% of the total sales. Some of the events that happened in the month of July (Refer to Part A) are benefiting the hotel, and some are non-controllable expenses. Using the information, prepare an actual budget for the month of August and September, identify variances and document the outcomes.

Following are the events that took place during the month of August and September:

• Meat prices remain 35% for the rest of the quarter.
• Beverages purchase account for 39% of total beverage sales.
• Sales increased by 7%.
• Advertisement costs decided ($1,000 for each month) were still incurred.
• Cost of utilities came back to the budgeted amount.
• Licensing fees; $580.

Perform the calculations in MS Excel by following the template provided below:

	August (Budgeted)	August (Actual)	Var (%) F/UF	September (Budgeted)	September (Actual)	Var (%) F/UF
	$			$
Revenue
Food sales	63,875	68346	F	60,225	64441	F
Beverage sales	123,750	132413	F	131,250	140438	F
Tab commission	23,925	25600	F	23,925	25599	F
Total revenue	211,550	226359	F	215,400	230478	F
Cost of sales
Food purchases	22,356	79226		21,079
Beverage purchases	49,500	88280		52,500
The total cost of sales	71,856	167506		73,579
Gross profit	139,694			141,821
Expenses
Accounting	1,500			2,150
Advertising/promotions	2,410			2,150
Bank charges	3,630			3,680
Cleaning contractor	3,720			3,720
Commission credit card	380			380
Small equipment replacement	410			410
Insurance	910			910
Laundry	180			180
Legal fees	180			180
Licence fees & permits	490			490
Motor vehicle expenses	250			250
Maintenance	2,110			2,110
Printing & stationery	400			400
Rubbish removal	250			250
Communication	1,000			1,000
Training & development	590			590
Wages & on-costs	99,450			96,550
Utilities	5,800			5,850
Total expenses	123,660			121,250
NET PROFIT	16,034			20,571