Part B

Instruction for the learners:

Task 1

Requires you to prepare a draft budget following a meeting with all heads of department where you

have finalised the details and requirements to be included for next year's budget.

Task 2

Requires you to prepare a final budget, based on the changes made to your draft budget following

a management meeting.

Task 3

Requires you to respond to 3 financial scenarios.

All responses must be typed and clearly referenced to each task. Your trainer will provide you with

feedback for each task. You will be provided with the opportunity to rectify any shortfalls based on

the feedback from submitted work for this assessment.

Each completed spreadsheet must be attached to the relevant task and clearly referenced.

Task 1

Your Tasks:

You are required to complete a draft budget based on information and factors that were

determined during an executive meeting at Hotel Futura.

A. Access the excel spreadsheet named "Task 1-Hotel Futura Budget Forecast". The first tab on this

spreadsheet is labelled "Departments Small" and shows the existing budget figures for the 2016

financial year.

B. Use the template "Draft Budget" on the second tab of the spreadsheet and perform the

calculations below using basic formulas.

Your forecast needs to include the Dollar Figures and the % values for these affected by

changes outlined below.

The % values must be listed for each expense item shown in the Expenses Analysis for

each department.

You have met with the department heads of Hotel Futura and the following details have

been discussed to prepare your draft budget for 2017:

1. Rooms Division:

a. Due to renovations the rooms available have been reduced to 96%.

b. The forecasted occupancy rate has been adjusted to 80%.

c. The revenue per available room needs to be increased to $150.00

d. The COGS will increase to 15% of total room revenue

e. Staff costs need to be increased to 20% of total room revenue to allow for increases in

superannuation and awards.

f. Other Expenses need to increase to 8% of total room revenue to cover electricity price rises.

2. Catering:

a. The food revenue will be increased by 15% due to a new marketing campaign and specialty menus

b. The beverage revenue will increase by 8%.

c. Staff costs need to be adjusted to 44% of the food budget.

d. Other Expenses will need to be increased to 7%.

3. Banquet:

The Banquet Division will be directly affected by the new marketing campaign which has been directed

at daytime seminars and corporate functions. For this purpose the kitchen has received specialised

equipment including multiple combi steamers, hold-o-mats and sous-vide equipment.

a. The new food revenue budget was set at $ 2,000,000.00 ($2 Million) and the beverage revenue was

increased by 75%.

b. The COGS will increase to 26%.

c. The staff costs have been reduced to 19%.

d. Other Expenses will need to increase to 14%.

4. Room Service:

a. The room service revenue from food needs to be increased by 15%.

b. Due to a different system to clear floors and organise delivery, the staff costs will be reduced to

34%.

5. Mini Bar:

The mini bar budget remains unchanged and increased staff costs are absorbed through different

processes.

6. Bar Budget:

a. The food revenue budget has been increased by 25% with the implementation of a Tapas Menu.

b. The Beverage Revenue budget has been increased 20% with the introduction of a new cocktail bar

and happy hour specials.

c. Staff costs will need to be adjusted to 36%.

d. Other Expenses need to be increased to 18%.

Task 2

Your Tasks:

You have provided the chief financial controller with the draft budget for 2017. Following

the recent executive meeting where the draft budget was discussed, you are now required

to establish the final budget reflecting the changes based on the latest actuals and

variances as well as major road works which will affect Futura Restaurant and Bar during

2017.

A. Access the excel spread sheet named "Task 2-Budget Futura_Rest.&Bar". The first tab on this

spreadsheet is labelled "Futura Restaurant and Bar" and shows the Draft budget figures for the 2017

financial year.

B. Use the template "Revised Budget" on the second tab of the spreadsheet and perform the calculations

below using basic formulas based on the following changes:

Month Customer

numbers

Average Spend

(Food)

Average Spend

(Beverage)

January 1850 $ 45.00 $ 9.70

February 2000 $ 37.00 $ 9.70

March 700 $ 42.00 $ 9.70

April 1200 $ 48.00 $ 9.70

May 1200 $ 36.50 $ 9.70

June 600 $ 35.00 $ 9.70

July 950 $ 34.00 $ 9.70

August 800 $ 38.00 $ 9.70

Septembe

r 900 $ 29.00

$ 9.70

October 650 $ 29.50 $ 9.70

November 980 $ 35.50 $ 9.70

December 2200 $ 48.00 $ 9.70

1. Calculate the anticipated Food revenue for each month and the yearly total.

2. Calculate the anticipated Beverage revenue per month and the yearly total.

3. Calculate the Total Revenue for each month and the yearly total.

4. Calculate the overheads total for each month (at 90% of turnover for each for each month with 1000 or

more customers and at 96% for each month with less than 1000 customers) and the yearly total.

5. Calculate the profit for each month and the yearly total.

6. Calculate the Cost of Goods Sold for food and beverages, given a combined percentage of 32%.

7. Calculate the staff costs for each month at 31% for each month with 1000 or more customers and at

35% for each month with less than 1000 customers.

8. Calculate the 'Other overheads" for the operation.

9. Print a copy of the revised budget.

10. Print the revised budget showing all formulae used.