The following information relates to the Food Department of Hotel Hisar for the month of February 2022 in TL.

Cost of employee meals

39,000

Food inventory-beginning

31,500

Food inventory-ending

43,000

Food purchases

418,500

Other direct expenses

163,000

Payroll and related expenses

257,500

Food sales revenue

921,000

Transfers from kitchen to bar

7,500

Transfers from bar to kitchen

9,000

a. Calculate the cost of food sold in the Food Department.

b. Calculate the food cost percentage of the Food Department.

c. Calculate average check in the food Department if 100 guests were served each day during the month of February.

d. If the Undistributed Operating Expenses of the Hisar Hotel is 450,000TL. and undistributed operating expenses are allocated to the departments on revenue basis. The total revenue of the hotel is 3,070,000 TL. for the month of February, 2022. Allocate the undistributed operating expenses to the Food Department, calculate the operating income of the Food Department (Earnings before fixed charges).

e. Discuss the issue of allocating indirect expenses, indicate which profit figure you would use to evaluate the performance of the Food Department in Hisar Hotel.