Food cost , Labour cost And Overhead cost Question/Sample

Question -Classify and Ascertain Food costs, Labour costs and Overhead Costs . Also find percentage to total sales of each cost.  The following data is provided -




Sale food and beverage = 40000

Opening stock of food and beverage = 1000

Purchase of food and beverage = 15000

Closing stock of food and beverage = 500

Restaurant Rent  = 5000

Fuel expenses = 500

Office expenses = 500

Allowance travelling = 1000

Employee provident fund = 1000

Wages and salary = 5000

Depreciation = 500

Repair and telephone = 500

Complimentary food served = 700

Staff food cost = 300

Solution

Total food cost  calculation


Opening stock = 1000
Add: purchase = 15000
It will be  = 16000

Less: closing stock = 500
Less : staff meal = 300
Less : complimentary meal = 700

It will be = 14,500

For food and beverage cost percentage calculation,  we will use formula

 Total f and b cost / Total sales * 100

14500 * 100/ 40000 = 36%

Total labour cost calculation 

We will add wages and salary, travel allowance , employee provident fund , wages and salary which will give us _____amount.  Now our formula will be , 

Total labour cost percentage ,

  Total labour cost * 100/ Total sales

=  _________%

Total overhead calculation, 

We will add restaurant rent, fuel expenses, office expenses, depreciation, repair and telephone and calculate total overhead percentage using formulae, 

Total overhead / Total sales * 100 which will be _________%

Now , Net profit will be = Total sale - Total cost 

Net loss = Total cost - Total sales

Our total cost will be = food cost + Overhead cost + labour cost.

Gross profit will be = Total sale - Food cost

Gross profit % = Gross profit * 100 / Total sales.

Net loss percent = Net loss * 100/ Total sales 

All our Hotel data are ready now including all expenses and profit/loss percentage of a month / year. We can reduce cost easily if we feel some cost is more and We also knew gross profit i.e Total profit after  food and beverage sold and overhead and labour expense of our Hotel. 



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