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FUDCOST M3. Unit 2. Presentation

The document outlines a course module focused on controlling food and labor costs in service and sales, including the types of costs, budgeting as a cost control tool, and creating schedules. It details learning objectives related to payroll costs, labor cost percentages, and factors affecting labor costs, both directly and indirectly. Additionally, it covers employment conditions, mandatory benefits, and salary information for various job titles in the hospitality industry.

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Gene Roy P. Hernandez
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2 views42 pages

FUDCOST M3. Unit 2. Presentation

The document outlines a course module focused on controlling food and labor costs in service and sales, including the types of costs, budgeting as a cost control tool, and creating schedules. It details learning objectives related to payroll costs, labor cost percentages, and factors affecting labor costs, both directly and indirectly. Additionally, it covers employment conditions, mandatory benefits, and salary information for various job titles in the hospitality industry.

Uploaded by

Gene Roy P. Hernandez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FUDCOST

Course module (CM) Week Course Unit


CM 2 Unit 1. Controlling Food Cost
Controlling Food 13-14
in Service and Sales
Cost and Labor
Unit 2. Controlling Labor Cost
Cost in Services 15-16
in Service and Sales
and Sales in local
Unit 3. Global Dimensions of Cost
and global context 17
Control
Controlling Labor Cost in
Service and Sales
Chapter Learning Objectives
• Distinguish between fixed, variable, and
semi variable costs.
• Explain how payroll cost.
• Describe the components and factors to
consider in the development of a master
schedule.
• Explain the difference between a master
schedule and a crew schedule.
Chapter Learning Objectives
continued
• List the factors that affect labor cost.
• Explain how direct factors, such as business
volume, affect labor cost.
• Calculate turnover rate percentage, total
peso for labor costs, peso available for
scheduling, and hours available for
scheduling.
• Explain how indirect factors, such as quality
and productivity standards, affect labor
costs.
Types of Costs
• Fixed costs
• Stay the same regardless of increases or decreases in volume

• Variable costs
• Increase or decrease with increases or decreases in volume

• Semivariable costs
• Part fixed and part variable; also increase or decrease (but at a slower rate)
with increases or decreases in volume
Fixed and Variable Payroll Costs
Total Labor Cost Consists Of
Pay Other Payroll Costs
• Includes employee’s • Includes payroll
hourly wages taxes and
• Includes assessments
management • Includes benefits
salaries costs
Common Employee Benefits
• Paid holidays • Life insurance
• Paid vacations • Disability insurance
• Paid sick or personal • Dental insurance
days • Vision insurance
• Health insurance • Company-funded
retirement
programs
Labor Cost Percentage
• Restaurant managers must relate the dollars spent for labor to the
sales generated by those labor dollars.

Labor cost ÷ Sales = Labor cost percent


Estimated Daily Payroll Cost Percent
• Step 1 – Divide weekly management cost by the
number of days open per week to
determine the daily management cost.
• Step 2 – Add the variable (hourly) labor used
per day to the daily fixed labor
calculated in Step 1 above.
• Step 3 – Divide the daily payroll costs by the
estimated daily sales to determine the
estimated daily payroll cost percent.
Budget as Cost Control Tool
• Budgets help control spending. They are best prepared after
evaluating
• Menu items to be served
• Expertise needed to execute the menu
• Methods of food preparation
• Type of service
• Facility’s location
• Impact of holidays
Creating Schedules
• Perform historic sales analysis with
• Yearly and monthly data from past income statements
• Hourly, daily, and weekly point-of-sale (POS) data
• If no POS is available, undertake a guest check analysis.
Creating Schedules continued
• Sales Projections
• An estimate of future sales
• Include increases or decreases to historical sales patterns
• Consider national and local economic trends
Creating the Crew Schedule
• Include specific employee names and reporting times
• Should be distributed well in advance
• Must ensure balance and equity for all employees
Creating the Crew Schedule continued
Goals of the crew schedule

• Build flexibility.

• Use accurate sales projections to ensure the right number of staff


are assigned at the right times.

• Consider legal restraints and company policies.


Factors Directly Affecting Labor Costs
• Sales levels
• Time tracking
• Time sheets
• Timecards
• Advanced electronic methods
• Schedules and schedule modifications
• Overtime
• Benefits offered
• Labor contracts
Factors Indirectly Affecting Labor Costs
• Adherence to Standards
• Standards of employee performance are similar to standards of food quality.
• Just as food standards can be quantified, so can worker productivity be
quantified.
Philippine Holidays
Pay Rate
Step 1: Collate Attendance Info
Step 2: Get Base Pay
Step 3: Plot Workdays
Step 4: Plot Work Hours
Step 5: Calculate
Thank you
Job Title Range Average

Human Resources (HR) Manager ₱109k - ₱715k ₱411,840

General Manager, Hotel ₱427k - ₱1m ₱550,000

Operations Manager ₱600k - ₱1m ₱958,647

Human Resources (HR) Supervisor ₱285k - ₱480k ₱393,000

Housekeeping Manager ₱0 - ₱0 (Estimated *) ₱728,767

Accounting Assistant ₱0 - ₱0 (Estimated *) ₱158,188

General Accountant ₱0 - ₱0 (Estimated *) ₱436,750


Executive Chef ₱0 - ₱0 (Estimated *) ₱1,000,000

Sales Account Executive ₱0 - ₱0 (Estimated *) ₱244,168

Hotel Manager ₱0 - ₱0 (Estimated *) ₱180,000

Assistant Chief Engineer ₱0 - ₱0 (Estimated *) ₱750,000

Front Office Supervisor ₱0 - ₱0 (Estimated *) ₱170,917

Chef de Partie ₱0 - ₱0 (Estimated *) ₱180,000

Front Desk Receptionist ₱0 - ₱0 (Estimated *) ₱122,084


Public Relations (PR) and Marketing
₱0 - ₱0 (Estimated *) ₱150,397
Coordinator

Property Manager ₱0 - ₱0 (Estimated *) ₱547,500

Account Manager Sales ₱0 - ₱0 (Estimated *) ₱390,000

Director of Digital Marketing ₱0 - ₱0 (Estimated *) ₱1,569,427

Purchasing Officer ₱0 - ₱0 (Estimated *) ₱390,000

Human Resources (HR) Assistant ₱0 - ₱0 (Estimated *) ₱84,001

Design Architect ₱0 - ₱0 (Estimated *) ₱312,000


Conditions of Employment and
Benefits provided for Employees
Employment Conditions
• Normal working hours shall not exceed eight (8) hours a day
• Payment of overtime work shall consist of an addition of at least 25%
of the regular wage per hour worked or 30% thereof
during holidays or rest days
• Minimum wage rates for Agricultural and Non-Agricultural lines of
work vary in every region and should be properly observed
• Minimum age of employment is 18 years old but those aged 15 to 18
can be employed given that they work in non-hazardous
environments
• In the event of a bankruptcy or liquidation, workers shall be paid their
full salary before other creditors may establish any claim to a share
in the employer’s assets
Mandatory Benefits and Contributions
• Companies are mandated by the Labor Code to give their regular employees
a 13th month pay equivalent to one (1) month of their annual salary
• Service incentive leave of at least 5 days with pay for every year of service
• Employees have a right to a weekly rest period of not less than 24
consecutive hours after every 6 consecutive normal work days
• Withholding a portion of an employee’s monthly salary to remit as
contributions to government agencies is a requisite for employers, these
agencies are as follows:
• Social Security System (SSS)
• Home Development Mutual Fund (HDMF)
• Philhealth
• Provision of holiday pay
• Paternity and maternity leave benefits
• Other benefits such as Fringe, Incentives and other allowances
Total basic salary
Php 106,147.00
earned for the year

Php 106,147.00 ÷ 12 months

= Php 8,845.58 (the


proportionate 13th month pay)
FAQS ON WAGE AND
WAGE RELATED
BENEFITS
https://bwc.dole.gov.ph/index.php/forms?layout=edit&id=86
Thank you

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