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Prepare a cash budget showing a schedule of cash receipts Prepare a variance analysis Requirements :

This assignment requires students to:

Prepare a cash budget showing a schedule of cash receipts

Prepare a variance analysis  


Students are required to complete the assignment individually.

Complete Part A and B (see below).  

A hardcopy of  the assignment is to be submitted with a Griffith College assignment coversheet at the start of class in week 11.

Please do not bind your assignment. Staple the assignment in the top left-hand corner.

Assignment Information

Part A – Practical Question  (4 Marks)

Archies Pty Ltd is preparing a cash budget for  October, 2016.  The following information relates to sales and purchases for the business:

1.  Sales

    a) The sales are made up of  20% cash sales and 80% on credit.

                b)  35% of invoices are collected in the month they are invoiced.  60% are

        collected in the  month  after the sale and 5% are uncollectible


Prepare the following schedules for Archies Pty Ltd for October, 2016:

i.Cash collections schedule

Projected monthly sales are:


August     236,500

September                 224,400

October     275,680

Part B – Practical Question  (6 Marks)

Markons Pty Ltd make household products which they sell to shops and households.  One of its most popular products is a cleaning detergent called Sparkle.  Markons Pty Ltd use a traditional standard costing system and below are the  materials, and labour standard costs to produce one box of Sparkle detergent.

Direct Materials 1.5 kg @ $12 per kg$18.00

Direct manufacturing labour 0.5 hr @ $24 per hr$12.00

During the year 4000 boxes of Sparkle detergent were produced and sold.  The actual costs of materials and labour to produce 4000 boxes were as follows:-

Direct materials  6500 kg @11.50 per kg$74,750

Direct manufacturing labour1960 hrs @ $25 per hr$49,000


i.Calculate price and efficiency variances for direct materials and direct manufacturing

Labour variances    (4 marks)

ii.Explain one reason for each of the material and labour variances (2 marks)

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