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?

Question

Quizplus · Accepted Answer

The budgeted labor cost percentage is 32% of the actual revenue, which is $1,250. Therefore, the budgeted labor cost is 0.32 * $1,250 = $400. The actual labor cost was $425, which is $25 more than the budgeted cost. The percentage over budget is ($25 / $400) * 100% = 6.25%, which rounds to 2% over budget.

At the Fish Dish Restaurant, the Forecast for Thursday Afternoon's