Subjects cost accounting

Function Cost

Step-by-step solutions with LaTeX - clean, fast, and student-friendly.

Search Solutions

Function Cost


1. Stating the problem: We are tasked to calculate for a function the following: i. Food cost per portion ii. Selling price per portion (head) iii. Total charge for the function 2. Calculate total food cost: Food items and cost: - Bream: 15 kgs \(\times 17 = 255\) - Ox-tail: 20 kgs \(\times 10 = 200\) - Chicken: 10 kgs \(\times 52 = 520\) - Rice: 10 kgs \(\times 23 = 230\) - Vegetables: 10 kgs \(\times 18 = 180\) Total food cost = \(255 + 200 + 520 + 230 + 180 = 1385\) 3. Calculate labor costs: - Two chefs for four hours at 150/hr each: \(2 \times 4 \times 150 = 1200\) - Two waiters for four hours at 45/hr each: \(2 \times 4 \times 45 = 360\) - Florist cost: 850 - Public address system: 740 - Comedian performing for 30 minutes at 200/20min: Rate per minute = \(200 / 20 = 10\), so 30 min cost = \(30 \times 10 = 300\) 4. Calculate total direct costs: \(1385 + 1200 + 360 + 850 + 740 + 300 = 4835\) 5. Calculate overheads using percentages on sales (denote sales as \(S\)): Payroll staff cost = 6% of sales = \(0.06S\) General overheads = 10% of sales = \(0.10S\) Profits = 22% of sales = \(0.22S\) 6. Total costs plus overheads and profit equal sales: \(S = 4835 + 0.06S + 0.10S + 0.22S\) \(S = 4835 + 0.38S\) \(S - 0.38S = 4835\) \(0.62S = 4835\) \(S = \frac{4835}{0.62} = 7806.45\) 7. Calculate food cost per portion: Assuming number of portions = sum of kg food converted to portions; total kg = 15+20+10+10+10 = 65 kg If standard portion size is not given, assume 1 kg per portion for calculation simplicity. So, number of portions = 65 Food cost per portion = total food cost ÷ portions = \(1385 / 65 = 21.31\) 8. Selling price per portion (head): Selling price = total sales ÷ portions = \(7806.45 / 65 = 120.10\) 9. Total charge for the function: Total charge = sales = 7806.45 Final Answers: - Food cost per portion = K21.31 - Selling price per portion = K120.10 - Total charge for the function = K7806.45