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b. Jennifer has subdivided her employees into the following categories: meat production, bakery production, salad production, service, sanitation, and management. She wants to develop a
b. Jennifer has subdivided her employees into the following categories: meat production, bakery production, salad production, service, sanitation, and management. She wants to develop a sales 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 this standard based on her current usage of labor hours. | |||
Labor Category | % of Labor Hours Used | Labor Hours | Sales per Labor Hour |
Meat production | 25% | 4,170 | $87.19 |
Bakery production | 15% | 2,502 | $145.32 |
Salad production | 10% | 1,668 | $217.99 |
Service | 20% | 3,336 | $108.99 |
Sanitation | 20% | 3,336 | $108.99 |
Management | 10% | 1,668 | $217.99 |
Total | 100% | 16,680 | |
c. Now that Jennifer has calculated her productivity standards, she would like to use them to develop a labor hours budget for each day next week. She has forecasted 8,000 guests, 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. | |||
Day | Forecasted Number of Guests Served | Guests Served per Labor Hour Standard | Labor Hours Budget |
1 | 900 | ||
2 | 925 | ||
3 | 975 | ||
4 | 1,200 | ||
5 | 1,400 | ||
6 | 1,600 | ||
7 | 1,000 | ||
Total | 8,000 |
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