Question

Del Ray operates the Champions Steak and Seafood restaurant. Last month, Del budgeted $3,800 for food, in the specific categories listed on the following page. It was a busy month, but Del thought he did a good job managing his costs. Imagine his surprise when, at the end of the month, Del calculated his actual expenses and entered them in the chart below. He found he was way over budget! Calculate Del's % of Budget in each category listed on the chart, as well as the total.

	Budget	Actual	% of Budget
Meats and Poultry	$1,800	$1,800
Seafood	1,200	1,500
Fruits and Vegetables	350	370
Dairy Products	200	210
Groceries	250	270
Total

By how much money was Del over his total budget? In which categories did Del's costs vary more than 10 percent from the amount he had originally budgeted? Del said it was a busy month. Would the number of customers he served affect his actual costs? What would you recommend he do next to further analyze the reasons for his restaurant’s budget performance last month?

Answer:  

Answer 1

	Budget	Actual	% of Budget		% of Increase
Meats and Poultry	1800	1800	NA
Seafood	1200	1500	125.00%		25.00%
Fruits and vegetables	350	370	105.71%		5.71%
Dairy products	200	210	105.00%		5%
Groceries	250	270	108.00%		8%
Total	3800	4150	109.21%		9.21%
Del was $350($4,150-$3,800) over his budget
Del has varied in only Fruits and vegetables for more than 10%
Yes if he has served more no. of consumers than it would affect the actual costs because if more no. of
consumers are served then consumption of raw material would also be high