Question: Jamesha has continued to run her successful catering business since graduating from CityTech. In her spare time, she's always willing to help her classmates, however. Her classmate Shi Lin has opened a coffee shop, and has asked Jamesha for help with standard costing. The sales records for Shi Lin's coffee shop, which - so far -- has only six items on its menu show the following quantities sold during the month of January. Item standard cost and selling prices are also indicated.
Item Cost Selling Price Quantity Sold
1 $2.50 $6.00 654
2 1.80 4.60 2195
3 2.30 7.00 1100
4 1.80 5.30 990
5 2.25 5.00 295
6 2.80 8.00 259
Actual cost of sales for the month of January was $11,885. Actual sales revenue for the month of January was $30,880. Shi Lin has made calculations, but wants Jamesha to double-check her numbers.
1. Calculate the stand cost percentage and the actual cost percentage for January.
2. Compare the results. If you were the dining room manager, explain why you would or would not be satisfied with the results.