Question 1 FT Office Supplies sells office equipment and computer accessories such as printers, toners, computer cables, port hubs and laptop bags. It used to operate three stores in the south of England, but it recently closed the stores and now conducts all business online. To monitor sales the business sets budgets every six months. Table 4 shows an income (sales revenue) budget for the first six months of 2007. Actual income figures are also shown. Table 4: Income budget and actual income for FT Office Supplies Budgeted income Actual income Jan Feb Mar Apr May 1,200 1,300 1,400 1,400 1,500 1,140 1,190 1,430 1,400 1,390 Jun 1,600 1,450 (000) Total 8,400 8,000 (a) Calculate the sales revenue variances for each month and the total sales revenue variance for the whole budget period. (b) Explain the variance in April. (c) Analyse two possible reasons for the pattern of variances for FT Office Supplies over the six month time period. Question 1 FT Office Supplies sells office equipment and computer accessories such as printers, toners, computer cables, port hubs and laptop bags. It used to operate three stores in the south of England, but it recently closed the stores and now conducts all business online. To monitor sales the business sets budgets every six months. Table 4 shows an income (sales revenue) budget for the first six months of 2007. Actual income figures are also shown. Table 4: Income budget and actual income for FT Office Supplies Budgeted income Actual income Jan Feb Mar Apr May 1,200 1,300 1,400 1,400 1,500 1,140 1,190 1,430 1,400 1,390 Jun 1,600 1,450 (000) Total 8,400 8,000 (a) Calculate the sales revenue variances for each month and the total sales revenue variance for the whole budget period. (b) Explain the variance in April. (c) Analyse two possible reasons for the pattern of variances for FT Office Supplies over the six month time period