Question

At the Fish Dish Restaurant, the forecast for Thursday afternoon’s lunch period was 200 meals served. The manager used the restaurant’s staffing guide to schedule employees to work and ended the lunch shift with total labor costs of $425. If the actual lunch revenue amounted to $1,250 and the budgeted lunch labor cost percentage for the month was 32 percent, how close to budget were the labor costs for Thursday’s lunch period?

Answer 1

Answer:

Explanation:

$revenues \times labor\: rate = expected \: labor$

$standard \: labor - actual \: labor = difference$

1,250 actual revenue

32% expected labor rate

400 expected labor

425 Actual Labor

-25 Over the budget

The labor cost was 25 over the budget