TECHNOLOGICAL UNIVERSITY OF PERU

ACADEMIC TASK 1

Budget formulation and evaluation

TEACHER: CESAR AUGUSTO CALLE

MEMBERS:

 ACOSTA QUINTO, MARIBEL TANEA

 RIPAZ ORTIZ, BLANCA FLOR
 MATTOS AQUINO, JONATHAN MIGUEL
 OROSCO VALENCIA, LISETH DIANA
 VERGARA CCORAHUA, JEIDI LUZ

Lima, May 16, 2023

Index

1. Generalities:
2.1. General description of the company
1.1.1 Economic activity
1.1.2 Obtaining accounting information (consolidates and directs the
participation of all areas of the company).

2.Specification:
2.1 Budget for finished products and raw materials: cost of finished products
2.2 Direct labor budget
2.3 Manufacturing indirect costs budget
2.4 Total Production Cost Budget
 1. Generalities
1.1 General description of the company
El bravazo is a consolidated company with different branches in Lima (San
Juan de Miraflores, San Borja, Surquillo, among others) that are dedicated to
the preparation and sale of fast food, such as hamburgers, salchipapas, broster
and others.
1.1.2 Economic activity
Fast food and beverage service
1.1.3 Obtaining accounting information (consolidates and directs the
participation of all areas of the company)
They have an accounting system that helps them better control their expenses,
the payments they make periodically and the long-term ones. Likewise, the
monitoring carried out on each area, its inventory, labor and sales, helps them
control how much the business spends.
 Sales: its income comes from three presentations of royal, classic and royal
burgers with bacon. The daily sales information places the 3 products first on
the list compared to other dishes.
 Labor: one of the expenses of “El bravazo” is the payment of salaries, which is
budgeted and projected through its accounting.
 Inventory: management is controlling the purchases of inputs whether daily,
weekly or monthly
2.Specification:
2.1 Budget for finished products and raw materials:
Cost of finished products

1stProjected Production

2nd Material Requirement

Classic Burger

Classic burger material

Analysis: It is shown that some data are handled in units and others in kilograms, such
is the case of the tomato that, when selected, is purchased per unit and not per kilo in
order to improve the quality of the final product. In addition, it can be seen that the last
two months are where their sales projection influenced by the Christmas holidays is
highest. On the other hand, the increase in sales projection is 20% higher compared to
the previous month.
Royal Burger

Royal Burger Material

Royal Burger + Bacon

Royal Burger Material + Bacon

Material for the 3 Burgers

Analysis:

 The quality of the raw materials is essential: The quality of the ingredients used
in a sandwich shop is a critical factor for customer satisfaction and business
success. Customers expect fresh, high-quality ingredients in their sandwiches,
and if the raw materials don't meet their expectations, they likely won't return.
 The proper selection of raw materials is important: It is important that the
sanguchería carefully selects the raw materials it uses. You should look for
reliable suppliers who offer fresh, quality ingredients, ensure they meet food
safety standards, and take into account factors such as the season of ingredients
and customer tastes and preferences.
 The variety of raw materials can be an advantage: The sangucheria can obtain
advantages by offering a wide variety of ingredients, as this can attract
customers with different tastes and preferences. It can also be beneficial to offer
seasonal ingredients or regional specialties to differentiate yourself from the
competition.

 Proper raw material management is essential: The sanguchería must ensure that
raw materials are handled properly, from receipt to storage and preparation. It is
 important to maintain hygiene at all stages of the process and control the
temperature of the ingredients to avoid contamination.

3° Raw material cost per unit

Total materials (In kilos)

INFLATION
Inflación anual 5%
Inflación mensual 0.41%

Material price adjusted for inflation

Raw material purchase budget

2.1 Direct labor budget

 The monthly payroll of the El Bravazo sangucheria in San Juan de Miraflores is as
follows:
There are a total of five collaborators, 2 are cooks, 2 are waiters and 1 is a
motorman. Only 1 waiter has an 8-year-old son and 1 cook has a 10-year-old son.
Collaborators have all the benefits of law.

CHEF WAYS MOTORIZED

Analysis:
In the San Juan de Miraflores store there are 5 collaborators, including 2 cooks with
a monthly remuneration of 2,200 soles, 2 waiters with 1,500 soles and a motor
worker with 1,025. It has all the legal benefits 100% because the company is in a
general regime.

The monthly provision is shown without movements, considering that the five will
work until the end of the year. In the case of the cooks, the labor is a gross total of
7016.49 soles, the waiters 4866.67 soles and the motorized 1573.98. Likewise, the
monthly projection for the 9 months gives us a total of 121,114. 21 soles for the total
number of collaborators.

Proper training is essential: The burger restaurant must provide adequate training to
its staff to ensure that they can perform their tasks efficiently and safely. This is
especially important for those who operate machinery such as the grill, as poor
handling can result in accidents or undercooked burgers.
Productivity and efficiency are key: Direct labor must be as productive and efficient
as possible, to maximize the performance of the burger restaurant. It is important
that the burger restaurant has experienced and motivated staff to ensure that orders
are prepared in a reasonable time and that customers are satisfied.

2.2 Manufacturing Overhead Budget

The costs are distributed into administrative and sales expenses.

It is important that the sandwich shop has good control over its indirect
manufacturing costs to be able to offer competitive prices and maintain profitability.
This can be achieved by implementing efficiency and continuous improvement
measures, such as optimizing resources and reducing unnecessary expenses.

2.3 Total Production Cost Budget

The production budget will allow you to know how much will be invested to
produce hamburgers that you plan to sell during a certain time.
 Projected Production

Sales Price x Projected Production

3 SALES BUDGET

 The sale price of the Classic Burger is S/ 9.50 and a 2% increase is projected starting
in June.
 The sale price of Hamburguesa Royal is S/ 10.00, projecting an increase of 2%
starting in June.
 The sale price of the Royal Burger + Bacon is S/ 14.00, projecting an increase of 2%
starting in June.
 The company has a 100% cash sales policy, since it is intended for the end
customer.
 Distribution costs are S/2.85 per day, which have an increase of 2% per month.
 Advertising and marketing expenses are approximately 3% of projected sales with
a maximum of S/1500.
Projected Production
 Operational Production

 The rent of the premises is S/1500

 The administrator has a salary of S/3000
 The exchange rate at the beginning of the period is S/ 3.72 per dollar and an annual
devaluation of 3.5% is expected.
 A brand positioning assistant is hired. Which will see the management of Google maps.
 The local water service is approximately S/ 100 per month.
 For electricity in the premises you pay S/ 100 monthly

Dev 0.29%
T.C. 0.29%
Improvement projections to generate better sales strategies and greater profits
for the company.

 Allow customers to customize their burgers. It offers a wide variety of ingredients and
seasonings so that each customer can create their favorite combination. This provides a
more satisfying experience and increases the likelihood of repeat purchases.
 Look for collaboration opportunities with other local businesses or participate in social
events to boost brand name and sales.
 Personalize the offers on special dates during the period of the year, in this way it will
bring more customer reception.
 Have a small burger presentation in order not to lose sales.
  Strengthen our competitive advantages in the search for differentiation from our main
competitors. That is, focus on enhancing customer service and attention.

Future operations evaluating income and expenses made in the short term

 Implementation of a software called Restaurant.pe, which allows for better control of

the sales and expenses that are made. In addition, it has as an additional segmentation of
face-to-face and delivery sales.

 Implement recreational games for children, since this would be very well received by
people, therefore, it will increase income.

 Rent a larger location and have a birthday area, this is because our sales are increasing
and the space is very small.

 Hire a Bartender for the drinks area (night shift) and new staff for customer service,
due to the increase in sales units.