The following data apply to the HASF Hardware Store and its 2011 budget Forecast Sales Jan $200,000 Feb $160,000 Mar $180,000 Apr $45,000 Balance Sheet Data December 31,2010 Cash $80,000 Account receivable: November sales 45000 December sales 50000 Inventory 54000 Account payable(merchandise) 27000 Other data are as follows: Sales are on credit with 60% of sales collected in the same month after sale ,40% in the second month after sale Cost of goods sold is 50% of sales Other variables costs are 30% of sales paid in the month incurred Inventories are to be 80% of next month’s budgeted sales requirements Fixed expenses are $15000 per month; all require cash Credit time period for purchases are 30 days On basis of above information answer following questions Find fixed expense in the month of March?
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.
Question 1
The following data apply to the HASF Hardware Store and its 2011 budget
|
|
|
|
Jan |
$200,000 |
|
Feb |
$160,000 |
|
Mar |
$180,000 |
|
Apr |
$45,000 |
|
|
|
|
December 31,2010 |
|
|
Cash |
$80,000 |
|
Account receivable: |
|
|
November sales |
45000 |
|
December sales |
50000 |
|
Inventory |
54000 |
|
Account payable(merchandise) |
27000 |
Other data are as follows:
- Sales are on credit with 60% of sales collected in the same month after sale ,40% in the second month after sale
- Cost of goods sold is 50% of sales
- Other variables costs are 30% of sales paid in the month incurred
- Inventories are to be 80% of next month’s budgeted sales requirements
- Fixed expenses are $15000 per month; all require cash
- Credit time period for purchases are 30 days
On basis of above information answer following questions
Find fixed expense in the month of March?
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