Question

12. A manager reported that 50 employees were working in the operation at the beginning of an accounting period, and 70 employees at the end of the period. During the accounting period 20 employees voluntarily left their employment and 4 employees were terminated. What was this manager's overall employee turnover rate in the accounting period?

50%

400%

500%

40%

[Questions 16-18] Use the following labor expense information for answering the next 3 questions.

Day	Sales	Guest Served	Labor hours used	Cost of labor
Thursday	$ 1,700	110	30	$ 380
Friday	$ 1,500	120	30	$ 380
Saturday	$ 2,400	210	50	$ 600
Sunday	$ 1,900	175	50	$ 600

16. Comparing the labor cost percentage, which day is the least productive day?

Friday

Saturday

Thursday

Sunday

17. What was the manager’s sales per labor hour on Friday?

$ 52.00

$ 42.00

$ 48.00

$ 50.00

18. Comparing the number of guests served per labor hour, which day is the most productive day?

Sunday

Friday

Thursday

Saturday

Question 20-21]  Ice bear operates a fine dining restaurant called the “The Egloo.” His labor productivity ratio of choice is guests served per labor hour. His standards are as follows:

• Servers = 10 guests per labor hour
• Buspersons = 25 guests per labor hour

Use the Guest Forecast chart below to answer the following questions 20 & 21.

Time	Forecasted Number of Guests Served	Server Hours Needed	Busperson Hours Needed
12:00 - 1:00	170
3:00 - 4:00	25
6:00 - 7:00	125
8:00 - 9:00	150

20. How many busperson labor hours should Ice Bear schedule for the time period from 8:00 to 9:00?

8

5

7

6

21. How many server labor hours should Ice Bear schedule for the time period from 12:00 to 1:00?  

18

20

21

17

[Question 23-24] Use the following chart for the next two questions.

The Egloo – Compiled data from 2019

Yearly Sales (300 days/year)	$275,000
Food Expense	$82,500
Labor Expense	$104,500
Other Expense	$68,500
Days in operation for year	300
Average number of labor hours per day	35
Average number of guests served per day	140

23.Calculate the sales per labor hour using the above chart.

$ 24.23

$ 26.19

$ 21.53

$ 11.75

24. Calculate the labor expense percent using the above chart in question 23.

65.5%

38%

25%

30%

Answer 1

12. Employee turnover rate is calculated with the help of employees left the company and the average employees.

Average employees = (50+70)/2 = 60

Employees left = 20 + 4 = 24

Employee turnover rate = (Employees left/Average employees) *100

= 24*100/60 = 40%

16. Labor cost percentage is calculated with labor cost and sales on a particular day. Here we keep labor cost percentage as parameter to calculative the productiveness of the day.

Labor cost percentage = (Labor cost/Sales)*100

Labor cost percentage(Thursday) = 22.35%

Labor cost percentage(Friday) = 25.33%

Labor cost percentage(Saturday) = 25%

Labor cost percentage(Sunday) = 31.57%

Hence Thursday has the least productive day.

17. Sales per labor hour is derived from total sales and total labor hours.

Sales per labor hour = Total Sales / Total labor hours

Sales per labor hour on Friday = 1500/30

= $50

Manager's sales per hour was $50 on friday.

18. On the basis of number of guests and labor hours, most productive day is calculated.

Thursday Number of guests per labor hour is 3.6 by dividing 110/30.

Similarly friday 4 guests were served per hour and on saturday 4.2 guests were served per hour. On sunday, 3.5 guests were served per hour.

Hence, Saturday is the most productive day.

20. Ice bear's productivity standard is based on labor hours and the number of guests served. Also, he has set standards for servers and buspersons as 10 and 25 each per person. Now, back to the question, time period of 8-9 has 150 guests served and if bus persons alone are considered, 150/25 i.e. 6 buspersons are needed to serve the guests. Hence, the answer is 6 buspersons.

21. Server's standards are set as 10 guests per hour. Now, considering the time period of 12-1, there are 170 guests. Therefore, 170/10 i.e. 17 servers are needed during the time.
The answer is 17 servers.

23. As we know, sales per labor hour is calculated with the help of gross sales and labor hours. There are 300 working days in a year with 35 labor hours per day.

Total labor hours = 300 * 35 = 10500

Total sales = $ 275000

Sales per labor hour = (275000/10500) *100

Sales per labor hour = 26.19%  

24. Labor expense percentage is the calculation of labor costs with respect to total sales.

Labor expense percentage = (Labor costs/Total Sales) * 100

= (104500/27500) * 100

Labor expense percentage = 38%