It is important to maintain employee benefits as a means of loyalty and talent

It is important to maintain employee benefits as a

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incentive to maximize their productivity. It is important to maintain employee benefits as a means of loyalty and talent management. The proposed business decided to give benefits to its loyal and hardworking personnel. The table summarizes the said benefits to be provided. Table 33. List of employee benefits Description Number of employee 13 th month pay Studio Administrator Dance Studio Instrctor Zumba Instructor Front Desk Officer Security personnel Utility personnel 1 3 1 1 1 1 11,520 15,120 10,080 9,000 8,160 7,680 Total 8 61,560 Total Annual Cost Illustrated below is the total cost incurred by the studio for the whole year. Table 34. Annual expenses details Cost Annual Cost Salaries/Compensation Rent expense Depreciation expense Utilities expense SSS, Philhealth and Pag-IBIG Contribution Employee benefits 488,235.00 360,000.00 21,710.24 146,373.40 47,357.20 61,560.00 Total 1,125,235.84 Allocation of cost The cost is allocated based on the floor area covered by the office (14.58 sq. m) out of the total area of the business (372.30 sq.m). The remaining 357.72 sq.m of the total area was occupied by the activities
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53 related to the operation. The rate was applied to utilities expense and depreciation expense on leasehold improvement only. Table 35. Allocation of cost Description Administrative expense Operating expense Salaries Rent Depreciation Utilities SSS,Philhealth &Pag-IBIG Contribution Employee Benefits 138,720.00 14,400 4,755.32 5,854.94 13,016.40 11,520 349,515.00 345,600.00 16,954.92 140,518.46 34,340.80 50,040.00 Total 188,266.66 936,969.18 Service Price Hourly service fee The computation of the cost per hour per rental is based on all cost related to the operation of the business. Table 36. Computation of annual costs for dance rental Description Amount Salaries Rent Depreciation Utilities SSS,Philhealth &Pag-IBIG Contribution Employee Benefits 299,115.00 345,600.00 16,954.92 140,518.46 29,007.60 24,840.00 Total 856.035.98 Cost per hour per rental = Monthly cost / operating days Operatinghours = 71.,336.33 / 24 9.5 hours = 312.88 Rental fee per hour = 450 Mark-up = Rental fee per hour Cost per hour per rental = 450 ¿ 312.88
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54 = 137.12 Gross profit rate = Markup Rental fee per hour = 137.12 450 = 30.47% S ervice fee per Dance session The computation of the cost per hour per rental is based on all cost related to the operation of the business including the salaries, contributions, and 13 th month pay of a dance instructor. Table 37. Computation of annual costs of dance workshop Description Amount Salaries Rent Depreciation Utilities SSS,Philhealth &Pag-IBIG Contribution Employee Benefits 309,195.00 345,600.00 16,954.92 140,518.46 30,144.20 29,880.00 Total 872,292.58 Cost per session = Monthly cost / total sessions Operatinghours = 72,691.05 / 24 8 hours x 1.5 = 567.90 Dance workshop fee per session = 900 Mark-up = Workshop fee per session Cost per hour per rental = 900 – 567.90 = 332.10
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55 Gross profit rate = Markup Danceworkshop fee per session = 332.10 900 = 36.90% S ervice fee per zumba session The computation of the cost per hour per rental is based on all cost related to the operation of the business including the salaries, contributions, and 13 th month pay of a zumba instructor.
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  • Fall '16
  • Benjie
  • Depreciation, Kompakt, SM Dept, Nat’l Bookstore

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