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PART 3: Direct labour budget The owner of Bellyful Restaurant employs cooks and cashiers. The cashiers take orders and collect payment, transfer food from the

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PART 3: Direct labour budget The owner of Bellyful Restaurant employs cooks and cashiers. The cashiers take orders and collect payment, transfer food from the cooks to customers, and clean tables. Cooks are paid $10 per hour, and cashiers are paid $8 per hour. Bellyful Restaurant operates four shifts: 10 to 2, 11 to 2, 2 to 10, and 5 to 8. Weekdays and weekends are staffed similarly. Following are the shifts and required workers. Cooks Cashiers Shift 10 am to 2 pm 11 am to 2 pm 2 pm to 10 pm 5 pm to 8 pm 2. 3 2 3 2 2 3 3 Required: (a) Prepare a labour budget showing hours and costs for a month. (Assume 30 days per month.) (4 marks) (b) Discuss reasons why actual labour costs might turn out to be different from budgeted costs in part (a). (2 marks) (c) Identify possible ways the owner could reduce labour costs. Discuss possible drawbacks for each of your ideas. (2 marks)

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