Question
Jennifer operates Joe Bob's BarBQ Restaurant. She specializes in beef brisket and blackberry cobbler. Her operation is very popular. She would like to establish labor
- Jennifer operates Joe Bob's BarBQ Restaurant. She specializes in beef brisket and blackberry cobbler. Her operation is very popular.
She would like to establish labor standards for the entire year based on last month's figures because she believes that a month represents a good level of both customer service and profitability for her operation. Jennifer has an average guest check of $12 and an overall average payroll cost of $8 per hour.
- Use Jennifer's last month's operating results to calculate the following productivity standards: labor cost percentage, sales per labor hour, labor dollars per guest served, guests served per labor dollar, and guests served per labor hour.
| Operating Results for Joe Bob's | ||
| Week | Number of Guests Served | Labor Hours Used |
| 1 | 7,000 | 4,000 |
| 2 | 8,700 | 4,120 |
| 3 | 7,500 | 4,110 |
| 4 | 8,000 | 4,540 |
| Total | 31,200 | 16,770 |
| Calculate: | |
| Average guest check | $12 |
| Average wage per hour | $8 |
| Total sales |
|
| Total labor cost |
|
| Productivity Measurement | Productivity Standard |
| Labor cost percentage |
|
| Sales per labor hour |
|
| Labor dollars per guest served |
|
| Guests served per labor dollar |
|
| Guests served per labor hour |
|
- 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% |
|
|
| Bakery production | 15% |
|
|
| Salad production | 10% |
|
|
| Service | 20% |
|
|
| Sanitation | 20% |
|
|
| Management | 10% |
|
|
| Total | 100% |
|
|
- 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 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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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
