Bottoms up approach P5.11 The sales records for a coffee shop that has only 6 items on its menu show the following quantities sold during the month of January. Item standard cost and selling prices are also indicated.

Item Cost Selling Price Quantity Sold

1 2.50 6.00 654

2 1.80 4.60 2,195

3 2.30 7.00 1,110

4 1.80 5.30 990

5 2.25 5.00 295

6 2.80 8.00 259

Actual cost of sales for the month of January was $11,885. Actual sales revenue for the

Month of January was $30,880.

1. Calculate the standard cost percentage and the actual cost percentage for January.

2. Compare the results. If you were the dining room manager, explain why you would or

Would not be satisfied with the results.