Determine your staffing requirements - create timelines and

Question

Part -1:

ASSESSMENT 1

Restaurant Background

BD Eats is a contemporary Melbourne based inner city restaurant with a capacity of 220 seats. Located in the midst of the city, it is a popular establishment for CBD Workers, Tourists and local guests. It offers the following services:

- Breakfast menu:
  o Buffet - offering a charge back arrangement with 4 local hotels, and accepts walk-in's
  o Open 7 days a week : 06:30 - 10:00
- Lunch menu:
  o Menu Style: A-la-carte
  o Open 7 days a week : 11:30 - 14:30
- Dinner menu:
  o Menu Style: A-la-carte
  o Sunday - Friday - Open from 18:00 - 22:00
  o Saturday - Open 18:00 - 23:00
BD Eats is licensed, but does not open the bar before lunch service.

Average covers per day: 1 October - 30 November
	Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday
Breakfast	180	180	220	220	250	420	420
Lunch	150	180	190	200	220	260	140
Dinner	80	80	100	100	160	390	120

Wait Staff
	Level 1	Level 2	Level 3	Level 4	Level 5	Note: All staff are employed under the Hospitality Industry (general) Award 2010
Full Time	-	2	2	-	2
Part Time	-	4	2	-	-
Casual	A pool of casual staff at all levels are available on call
Note:	Part time staff are each employed for 20 hours p/w and are flexible with their rosters

You are to create and cost a Front of House roster for the months of October and November. This will require you to:
- Determine your staffing requirements
- Create timelines and the roster for the breakfast, lunch and dinner periods for the 2 months
- Add names to each position on the roster
- Ensure the following conditions are met:
o The roster is completed manually

ASSESSMENT 2 - PROJECT

1. What does the law say in regards to advising staff of their working times?

2. List 4 reasons rostering staff is important to the hospitality industry.

Use the following information to complete the time record of employees below
- You work for Elmo's Restaurant at a Grade 5 chef. Your hourly rate is $17.03
- You are employed on a fulltime basis and work 38 hours a week.
- You are employed under the Hospitality Industry - Accommodation, Hotels, Resorts Award 1998
- You receive one 30 minute unpaid break per shift
- The pay week is Monday 1/10/08 - Sunday 7/10/08
- On Monday 1/10/08 you started work at 6am and finished at 2.30pm
- On Tuesday 2/10/08 you started work at 6am and finished at 4.30pm. You did 2 hours overtime (rate of overtime pay is time and 'A )
- On Wednesday you had an RDO
- On Thursday you worked a 6 hour shift starting at 5pm. Remember to add on 30 minute unpaid break
- On Friday you worked from 3pm - 11.30pm
- On Saturday you worked 3pm - 11.30pm Your penalty rate for this shift is time and a quarter
- On Sunday you had a RDO

3. List 4 family friendly workplace initiatives are available within the hospitality industry

4. List 3 sociocultural friendly workplace initiatives are available within the hospitality industry

5. Answer the questions below according to the National Employment Standards

  - What are the maximum weekly hours of work an employer can request a employee undertake?

6. According to the Hospitality Industry (General) Award 2010, what allowances must be paid in the event of:

 - Overtime of more than 2 hours, without notification
 - A cook who is required to use their own tools
 - An employee required to start earlier than their shift, before their normal method of transport is available
 - A staff member required to perform first aid duties as part of their job (who holds a first aid certificate
 - Overtime of more than 2 hours, without notification r

7. According to the Hospitality Industry (General) Award 2010, what are the mandated breaks a full time employee can take in their shift?

8. List 5 different social and cultural considerations you should take into account when organising rosters

9. List 5 things should you consider when using contractors / casual employees within your roster

10. List 3 capabilities that rostering software have that may benefit the company described in Assessment 1.

Part -2:

ASSESSMENT 1

The owner of Cupcake Heaven, Sarah Winter, needs some assistance in preparing her budget and budget reports. She has gone through her past records thoroughly and has prepared a summary of what has happened and what is expected to happen. However she is unsure how to determine cash receipts from debtors and cash payments from creditors. She has provided the following for your information

From balance sheet

	Actual 31 July 2017	Predicted 31 August 2017
	$	$
Balance of stock control	2600	36400
Balance of debtors control	2400	2800
Balance of creditors control	8600	9600
Balance of cash at bank	3210	?
From the profit and loss statement
	Actual	Predicted
	31 July 2017	31 August 2017
Cash sales	6500	6600
Credit sales	2750	2800
Cost of sales	4500	4600
Stock loss	800	800
Wages	1600	1600
Office expenses	200	200
Discount expense	110	120
Discount revenue	150	160
Bad debts	100	100

a) Reconstruct the following general ledger accounts to help Sarah with the preparation of her budgeted cash flow statement. Debtors Control, Stock Control and Creditors Control. Don't forget to allow for 10% GST on all sales and purchases.

b) Using the above information, plus your reconstructions from part a, prepare a budgeted cash flow statement for Cupcake Heaven for the month ending 31 August 2017.

c) Taking into consideration your budgeted cash flow statement from part b, comment on the likely future cash position of this business

d) Prepare a budgeted profit and loss for the month ending 31 August 2017.

e) Write a brief report on the future performance expectations of Cupcake Heaven in related to the expected profit or loss

Assessment Summary - You are to submit the following
- 3 x reconstructed general ledger accounts
- Budgeted cash flow statement and report
- Budgeted Profit & Loss statement
- Overview report on future performance expectations

ASSESSMENT -2

Allan Smythe is the owner of Cakes-2-U, a specialist cake service that makes and delivers to wedding and celebratory cakes to customers. At the end of December 2016 there is only $260 in the company bank account. His other problem is that he would like to purchase a new vehicle (costing $25,000) for the business, but he doesn't know when he will have the $10,000 deposit required. One of Smythes friends has advised him that he should prepare a forecast of his future transactions, but he is unsure how to do so. He has asked for your assistance and has provided the following information in relation to his business. (You do not have to account for the GST in this question).

The quarter of January to March is Cakes-2-U's busiest quarter each year. In January 2016 he earned the following revenue: January $12,000, February $14,000, and March $15,000. After this the business slowed down a little. In the next quarter he earned the following revenue. April, $14,000, May $12,000 and June $10,000. Allan is confident that revenue will be higher in the early part of 2017. He has already signed contracts to complete the following jobs in January 2017.

Piketon's	$1,900
Fox's	$1,750
Tan's	$1,800
Singh's	$1,950
Strong's	$1,850
Ablert's	$1,950
O'Conner's	$1,900

- For the months of February and March, Allan expects to earn fees from about 10% higher than the previous year, but in the quarter April-June he doesn't expect the same level of business. In fact, he has stated that he expects his revenue to be about 5% lower than in the same quarter last year

- Allan purchases all ingredients and materials for jobs as they are required. When he is quoting for a job, he calculates the cost of materials and multiplies this by 4 to calculate the total cost of the job. Allan argues that this allows for labour costs, vehicle expenses and a profit margin for himself. The cost of materials is therefore 25% of the revenue expected to be earned.

- The business employs 2 assistants who are each paid on Fridays. One is employed full time and is usually paid $50 per week. The other is employed on a casual basis. During the busiest months (January to March) the casual is probably paid around $500 per week. In the period April-June his wages will drop back to $400 per week.

- The company has one vehicle which delivers all orders. Petrol expenses for the vehicle are usually around #200 per month, but in the January-March quarter this will go up to about $240 per month. The vehicle is due for a service in February, and this will cost about $320

- Insurance on the vehicle is due.on 2 March each year, and is expected to cost $640 this year. Registration of the vehicle is due on 11 June and should be about $540

- Allan advertises his business in the local papers at a cost of $150 per month

- New equipment will have to be purchased during February at a cost of $3,800. Allan has arranged for a credit arrangement to help with this purchase. The supplier has agreed to take a $1,000 deposit on delivery of the equipment, and then $400 payments will have to be paid each month until it is fully paid off

- Allan does his office work from home. He usually incurs office expenses for the business at around $100 per month

- Loan repayments of $1500 are due on 15 February, 15 May, 15 August and 15 November

- Allan usually redraws $500 each Friday for personal use

a) Prepare a cash budget for Cakes-2-U for the period January - June 2017. You budget should allow for the anticipated cash balance at the end of each month

b) Provide a written report that states when Allan will be able to afford the $10,000 deposit for the new vehicle. Support your answer with reasons

c) Arrange a time and present your budget to Allan (role-played by your assessor) and explain your proposed cash budget along with your recommendations. It is important that you have access to a soft-copy of your budget for this meeting

ASSESSMENT - 3

Questions

1. Define the following Budgeting Terms:

• Budgeted balance sheet
• Budgeted cash flow statement
• Budgeted profit and loss statement
• Cash shortage
• Variance report
• Zero-based budgeting

2. Describe the following types of budgets:

• Cash flow statement
• cash flow budgets
• departmental budgets
• wage budgets
• whole of organisation budgets

3. Describe the 6 main pieces of information you will need in order to prepare a project budget

To assist in budgeting for the year ending 30 June 2016, Central Bakery has provided the following information.

Income Statement for the year ended 30 June 2015

2016			2017 (estimates)
	$	Details
Sales (80% credit)	500,000	1100 units @ $500 inc GST	Increase price per unit by 5% and number of units by 15%
Cost of sales	200,000	Cost $200 per unit inc GST	Supplier's price unchanged. All stock is purchased on credit
Gross Profit	300,000
Less other expenses
Bad debts	4000		20% of credit sales
Depreciation of equipment	18,000	15% per annum straight line	Same rate and method
Wages	95,000		5% increase plus one new employee at $65,000
Office expenses	25,000		Will pay $30,800 inc GST
Total Expenses	142,000
Net Profit	158,000

2016			2017 (estimates)
	$	Details
Assets
Bank	28,000		No required
Debtors control	52,000		Collect $500,000 from debtors
Stock control	40,000	200 units	Number of units damaged
Prepaid office expenses	800		30 June 2016 balance $2000
Equipment	120,000		New equipment purchased for cash $20,000 + GST
Accum Dep'n	(44,000)
Total Assets	196,800

2016			2017 (estimates)
	$	Details
Liabilities
Creditors control	27,000		Pay $245,000 to creditors 30 June balance $35,000
Accrued wages	2000		30 June balance $3,500
GST Clearing	3000		Not required
Loan	36,000	Taken 30 June 2015	Settle in February paying $4,200 in total
Total Liabilities	36,000
Owners' equity
Capital	168,800		Drawings $60,000 cash, no additional capital
Total equity	196,800

4. Reconstruct the debtors control account to determine the estimated balance at 30 June 2017

5. BC Corp plans to sell the widgets they produced as they are produced. Management plan to supply the widgets at an introductory price of $10 each for the first 2 quarters, then increase the price by 25% for quarters 3 and 4 consecutively.

The Sales Manager anticipates that during quarter 1 they will sell 50% of the manufactured widgets, 75% during quarter 2, and 90% during quarters 3 & 4. The additional supply of widgets will be put towards stock for future sales.

The Sales Manager also anticipates that an allowance of 5% for discounts and allowance (from gross sales) will continue due to historical sales history

Produce a Sales Budget for the 4 quarters.

6. Provide an example of when a budget will need to be changed in response to changing operational requirements.

7. It is not always appropriate to base sales forecasts on current sales trends. State 3 examples of factors besides overall demand for your product which may impact on sales in the future.

8. What is a sensitivity analysis? Discuss how this can impact the business budget

9. List 2 different computerised accounting packages available for the Hospitality Sector?

10. Outline the calculation method used to determine the following profitability returns ratios.

Operating return on assets
Return on assets
Return on total capital

11. List and explain 5 different measures of variance to be considered when developing an annual budget

12. Describe and compare the following forecasting techniques

Time series forecast

13. List 3 common features and assumptions that are inherent in forecasting, regardless of the method used?

14. Describe how each of the following factors impact on budget development. Provide an example to demonstrate your comments

• Growth or decline in economic conditions
• Organisational objectives
• Shift in market trends
• Significant price movement for certain commodities or items
• Supplier availability and cost
• financial proposals from key stakeholders
• income and expenditure for previous time periods
• departmental, event or project budgets
• grant funding guidelines or limitations
• management policies and procedures