Cost Control Problem Set

Topics: Cost accounting, Cost, Costs Pages: 3 (689 words) Published: October 8, 2014
HB 267 Cost Controls: Homework quizDue: Thursday 10/7/14
Name ______Macie DeGraaf________________15 points
Menu item |Number sold |Standard/budgeted portion cost | |A |580 |\$4.45 | |B |285 |\$6.20 | |C |600 |\$4.15 | |D |200 |\$6.00 | |E |475 |\$5.95 | |F |320 |\$7.05 | |G |545 |\$6.10 | |H |200 |\$6.95 | |Totals |3,205 | | | | | | |Solve all problems for 2 decimal places (x.xx) | | | |Food sales |\$57,680.30 | | | | | | |1. Food cost \$ based on standard cost figures |\$17834.75 |(1 pt) | | | | | |2. Food cost % based on standard cost figures |30.92% |(1 pt) | | | | | |3. Contribution margin \$ |\$39845.55 |(1 pt) | | | | | |Actual inventory figures | | | |Opening inventory |\$6,415.60 | | |Purchases |\$19,950.30 | | |Ending inventory |\$6,852.65 | | | | | | |4. Cost of goods sold \$ |\$19513.25 |(1 pt) | | | | | | | | | |5. Food cost % based on actual cost figures |33.83% |(1 pt) | | | | | | | | | |6. Difference between standard and actual cost in \$ |+1678.5 |(1 pt) + or | | | | | |7. Difference between standard and actual cost % |+2.91% |(1 pt) + or | | (Be sure to indicate whether the differences in questions 6. and 7. are positive or negative)

8. Explain the significance of and the possible reasons for the dollar and percentage differences between the standard costs and the actual costs. What are some of the possible causes? What is important to understand about the difference? (2 pts) There are several causes behind a higher food cost % and cost of goods sold. One could be that the restaurant was expecting a higher ending inventory. Another would be that there weren’t as many employee meals or discounts included that were expected during the planning of the restaurant.

The following information applies to the mythical City View Restaurant located in Chicago, IL Assume there are no allowances, transfers or discounts. Solve all problems for 2 decimal places (x.xx)

September 1, 2013Food inventory value:\$5,437

September 30, 2013Food...