My question is in two parts:
1) Is it right to read the Qur'aan over the dead body before burial, when still in the house?
2) Is it correct that one is not allowed to offer any food or drink to people, if the body of the deceased is still in the house?

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.

There is no sound evidence from the Qur'aan, narrations of the Prophet or the practice of the companions of the Prophet that proves reciting Qur'aan on a dead person before his burial. If it would have been a good act, then they would have done it before us. The Prophet said: “Whoever innovates anything in this matter of ours that is not part of it, will have it rejected.” [Al Bukhari and Muslim]

The wording according to another narration is, “Whoever does any action that is not in accordance with this matter of ours (i.e., Sunnah), will have it rejected.”

Hastening to perform the funeral procession, to pray on the deceased, burying the dead body and asking forgiveness for him, is confirmed by the Sunnah of the Prophet .

All good lies in following the Prophet and the only good is that to which he guided his Nation. It has not been reported from him that he ever taught his Nation to recite the Qur'aan before or at the time of burial.

However, there is no objection in presenting the reward of recitation of the Qur'aan or making supplications for the deceased or giving charity on his behalf. These acts can be done at any time, before the burial or after it.

Also, preparing food for those who gathered for offering condolence whether before or after burial is also an innovation which is not reported from our righteous predecessors . All the known scholars have agreed that preparing food and gathering people for that is disliked and contrary to Sunnah.

The Sunnah is that food should be presented to the family of the deceased rather than the family being busy preparing food for others while they are already in grief and busy with the funeral procession. The Prophet ordered the preparation of food for the family of Ja’far when he died and said: "Prepare food for the family of Ja'far, what has befallen them has left them busy." [Ahmad, Abu Daawood, At-Tirmithi, Ibn Maajah and Al-Haakim] 

Jarir ibn Abdullaah Al-Baajili said: 'We consider the gathering of the people at the house of the dead person and the preparation of food for them after the burial, as being a lamentation (which is forbidden).'  [Ibn Maajah]

Therefore, we conclude that presenting food for those who gather at the house of the deceased is not allowed, whether it is done before or after the burial, if it is done with the intention of Sunnah or considering it as the right of the gathering people to offer condolences. However, if it is not the case, but it is done only because they are guests then it is allowed at any time whether it is before or after the burial.

Allaah knows best.