Sales Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Total Annual Sales $835,000.00 $835,000.00 $835,000.00 $835,000.00 Quarter (%) 27% 23% 20% 30% Sales $225,450.00 $192,050.00 $167,000.00 $250,500.00 Food Sales (Generated) 75% 75% 75% 75% Total Food Sales $169,087.50 $144,037.50 $125,250.00 $187,875.00 $626,250.00 Beverage Sales (Generated) 25% 25% 25% 25% Total Beverage Sales $56,362.50 $48,012.50 $41,750.00 $62,625.00 $208,750.00 $835,000.00 Cash Collection: D Your total sales are comprised of:………………...………………………..Credit card sales 70% ……………………………………………………...…………………………………Cash sales 20% ………………………………………………………..………..………………Sales on account 10% Your credit card commissions expense which is deducted by the financial institution is.. 2.5% Previous collection experience provides you with information on collection patterns as follows: Credit cards sales-in the quarter of sale……………………………………………………….. 80% Credit card sales-in the quarter following sale…………………………………………………. 20% Sales on account are collected in the quarter following the sale. D) Prepare a detailed schedule of cash collections for each quarter and for the year.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
| Sales Budget | |||||||
| Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total | |||
| Total Annual Sales | $835,000.00 | $835,000.00 | $835,000.00 | $835,000.00 | |||
| Quarter (%) | 27% | 23% | 20% | 30% | |||
| Sales | $225,450.00 | $192,050.00 | $167,000.00 | $250,500.00 | |||
| Food Sales (Generated) | 75% | 75% | 75% | 75% | |||
| Total Food Sales | $169,087.50 | $144,037.50 | $125,250.00 | $187,875.00 | $626,250.00 | ||
| Beverage Sales (Generated) | 25% | 25% | 25% | 25% | |||
| Total Beverage Sales | $56,362.50 | $48,012.50 | $41,750.00 | $62,625.00 | $208,750.00 | ||
| $835,000.00 |
Cash Collection:
D Your total sales are comprised of:………………...………………………..Credit card sales 70%
……………………………………………………...…………………………………Cash sales 20%
………………………………………………………..………..………………Sales on account 10%
Your credit card commissions expense which is deducted by the financial institution is.. 2.5%
Previous collection experience provides you with information on collection patterns as follows:
Credit cards sales-in the quarter of sale……………………………………………………….. 80%
Credit card sales-in the quarter following sale…………………………………………………. 20%
Sales on account are collected in the quarter following the sale.
D) Prepare a detailed schedule of cash collections for each quarter and for the year.
Step by step
Solved in 4 steps with 4 images
