SITXFIN004 Task 1

Task 1

Your Tasks:

You are required to complete a draft budget based on information and factors that were determined during an executive meeting at Hotel Futura.

  1. Access the excel spreadsheet named “Task 1-Hotel Futura Budget Forecast”. The first tab on this spreadsheet is labelled “Departments Small” and shows the existing budget figures for the 2016 financial year.
  2. Use the template “Draft Budget” on the second tab of the spreadsheet and perform the calculations below using basic formulas.

Your forecast needs to include the Dollar Figures and the % values for these affected by changes outlined below.

The % values must be listed for each expense item shown in the Expenses Analysis for each department.

You have met with the department heads of Hotel Futura and the following details have been discussed to prepare your draft budget for 2017:

Rooms Division:

  1. Due to renovations the rooms available have been reduced to 96%.
  2. The forecasted occupancy rate has been adjusted to 80%.
  3. The revenue per available room needs to be increased to $150.00
  4. The COGS will increase to 15% of total room revenue
  5. Staff costs need to be increased to 20% of total room revenue to allow for increases in superannuation and awards.
  6. Other Expenses need to increase to 8% of total room revenue to cover electricity price rises.


  1. The food revenue will be increased by 15% due to a new marketing campaign and specialty menus
  2. The beverage revenue will increase by 8%.
  3. Staff costs need to be adjusted to 44% of the food budget.
  4. Other Expenses will need to be increased to 7%.


The Banquet Division will be directly affected by the new marketing campaign which has been directed at daytime seminars and corporate functions. For this purpose the kitchen has received specialised equipment including multiple combi steamers, hold-o-mats and sous-vide equipment.

  1. The new food revenue budget was set at $ 2,000,000.00 ($2 Million) and the beverage revenue was increased by 75%.
  2. The COGS will increase to 26%.
  3. The staff costs have been reduced to 19%.
  4. Other Expenses will need to increase to 14%.

Room Service:

  1. The room service revenue from food needs to be increased by 15%.
  2. Due to a different system to clear floors and organise delivery, the staff costs will be reduced to 34%.

Mini Bar:

The mini bar budget remains unchanged and increased staff costs are absorbed through different processes.

Bar Budget:

  1. The food revenue budget has been increased by 25% with the implementation of a Tapas Menu.
  2. The Beverage Revenue budget has been increased 20% with the introduction of a new cocktail bar and happy hour specials.
  3. Staff costs will need to be adjusted to 36%.
  4. Other Expenses need to be increased to 18%.

Task 2

Your Tasks:

You have provided the chief financial controller with the draft budget for 2017. Following the recent executive meeting where the draft budget was discussed, you are now required to establish the final budget reflecting the changes based on the latest actuals and variances as well as major road works which will affect Futura Restaurant and Bar during 2017.

  1. Access the excel spread sheet named “Task 2-Budget Futura_Rest.&Bar”. The first tab on this spreadsheet is labelled “Futura Restaurant and Bar” and shows the Draft budget figures for the 2017 financial year.
  2. Use the template “Revised Budget” on the second tab of the spreadsheet and perform the calculations below using basic formulas based on the following changes:


Customer numbers

Average Spend (Food)

Average Spend (Beverage)



 $     45.00

$ 9.70



 $     37.00

$ 9.70



 $     42.00

$ 9.70



 $     48.00

$ 9.70



 $     36.50

$ 9.70



 $     35.00

$ 9.70



 $     34.00

$ 9.70



 $     38.00

$ 9.70



 $     29.00

$ 9.70



 $     29.50

$ 9.70



 $     35.50

$ 9.70



 $     48.00

$ 9.70

  1. Calculate the anticipated Food revenue for each month and the yearly total.
  2. Calculate the anticipated Beverage revenue per month and the yearly total.
  3. Calculate the Total Revenue for each month and the yearly total.
  4. Calculate the overheads total for each month (at 90% of turnover for each for each month with 1000 or more customers and at 96% for each month with less than 1000 customers) and the yearly total.
  5. Calculate the profit for each month and the yearly total.
  6. Calculate the Cost of Goods Sold for food and beverages, given a combined percentage of 32%.
  7. Calculate the staff costs for each month at 31% for each month with 1000 or more customers and at 35% for each month with less than 1000 customers.
  8. Calculate the ‘Other overheads” for the operation.
  9. Print a copy of the revised budget.
  10. Print the revised budget showing all formulae used.

Task 3

Your Tasks:

Read the following 3 scenarios and answer the questions attached for each scenario.

Scenario 1:

The finance team has created budget forecasts for Hotel Futura based on carefully researched factors for the last 3 years and these were always very accurate. The recent budget which included all departments of the hotel was implemented 3 months ago and the forecasted figures for Food Cost and COGS/Beverages in both the Restaurant and the Bar Operations have blown out by nearly 4.5 percent.

What could be the reasons for this? List 5 examples of areas you would investigate and explain why.

Scenario 2:

Hotel Futura has successfully operated for 7 years. During this period, overall turnover has doubled, and during the past 3 budget periods annual budgets have been increased by 15% each year which was exceeded each time. During the last 6 months however, management has noticed that the opposite trend seems to be occurring now.

List 5 external factors which could contribute to this and explain which methods you would use to determine this.

Scenario 3:

You have successfully negotiated the draft budget with each department head of the Hotel which has now been approved by the director and implemented 6 weeks ago.

You have finalised the financial data of the Hotel for the next management meeting and noticed the following:





Kitchen/Food Cost



(-)$ 13467

  1. The recently appointed F&B Manager has purchased 240 bottles of Hill of Blessings @ $90 each which represents a saving of $30 per bottle. However this exceeds the par stock level by 220 bottles and has created a cashflow problem, given the negative performance of the kitchen during this period as well.
  2. Which reports would you need to prepare for these issues?
  3. Who is it essential to involve when these matters need to be discussed?
  4. Suggest options to address and rectify these issues.
  5. How could the cashflow issue be addressed?