STU Hospitality Group

Scenario: Prepare Budget and Control Costs

Data:

• Budgeted Costs:
  • Food Costs: $100,000
  • Labor Costs: $50,000
  • Operating Expenses: $30,000

• Actual Costs:
  • Food Costs: $105,000
  • Labor Costs: $55,000
  • Operating Expenses: $32,000

Requirements:

1. Prepare a flexible budget based on actual sales and costs.
2. Calculate the variances for Food Costs, Labor Costs, and Operating Expenses.
3. Analyze the variances and identify potential causes.
4. Discuss strategies to improve cost efficiency and budget adherence at STU Hospitality Group.