What are two variances in the following budgets?

Sales Cost of Merchandise as % of Sales Budgeted Cost of Merchandise Sold Inventory Purchase Budget July August September October $ 600,000 $ 910,000 $475,000 $ 385,000 45% 45% 45% 45% $ 270,000 $ 409,500 $ 213,750 $ 173,250 Following Month's COGS Desired Ending Inventory% Desired Ending Inventory Dollars $ 409,500 $ 213,750 $ 173,250 20% 20% 20% 81,900 42.750 34,650 Budgeted Cost of Merchandise Sold Plus Desired Ending Inventory Total Inventory Needs Less Beginning Inventory Required Purchases 270,000 409,500 213,750 81,900 42,750 34,650 351,900 452,250 248,400 50,000 81,900 42,750 $ 301,900 $ 370,350 $ 205,650 Schedule of Expected Cash Disbursements - Purchases July August September Quarter June Purchases (AIP From Balance Sheet) $ 130,000 $ 130,000 July Purchases $ 150,950 $ 150,950 $ 301,900 August Purchases $ 185,175 $ 185,175 $ 370,350 September Purchases $ 102,825 $ 102,825 Total Disbursements $ 280,950 $ 336,125 $ 288,000 $ 905,075 Cost of Merchandise Sold for the Quarter Ending Inventory at the end of the Quarter Ending A/P at the end of the Quarter $ 893,250 $ 34,650 $ 102,825 July 40,000 520,000 560,000 Cash Budget August September 35,050 35,435 693,000 779,500 728,050 814,935 Quarter 40,000 1,992,500 2,032,500 Cash Balance: Beginning Add Cash Collections (From Sales Budget) Total cash Available Less Cash Disbursements For Inventory (From Purchasing Budget) For Operating Expenses (From Selling and Admin Budg For Equipment For Cash Dividends For Interest (From Previous Month's Borrowing) Total Cash Disbursements Excess (Deficiency) of Cash Financing Borrowing Repayment Total Financing Cash Balance: Ending 280,950 213,000 200,000 50,000 0 $ 743,950 -183,950 336,125 253,300 90,000 0 2,190 $ 681,615 46,435 288,000 196,750 0 0 2,080 486,830 328,105 905,075 663,050 290,000 50,000 4,270 1,912,395 120,105 219,000 0 219,000 35,050 0 -11,000 -11,000 35,435 0 -208,000 -208,000 120,105 219,000 -219,000 0 120,105 Outstanding Loan Balance Interest on Borrowing (Due the Following Quarter) $ 4,270 Sales Budget July August September Quarter $ 600,000 $ 910,000 $475,000 $ 1,985,000 Sales Schedule of Cash Collections August September July Quarter 340,000 340,000 180,000 180,000 420,000 420,000 June sales (A/R From Beginning Balance Sheet) July sales - Collected in Current Month July sales - Collected in Following Month August sales - Collected in Current Month August sales - Collected in Following Month September sales - Collected in Current Month Total Expected Cash Collections 273,000 273,000 637,000 637,000 142,500 142,500 $ 520,000 $ 693,000 $ 779,500 $ 1,992,500 Total Sales for the Quarter AIR at the end of the Quarter (September Sales Still not Collected) $ 1,985,000 $ 332,500 Sales Shipping as a Percentage of Sales Other Expenses as a Percentage of Sales Selling and Administrative Budget July August September Quarter $ 600,000 $ 910,000 $ 475,000 $ 1,985,000 5% 5% 5% 5% 8% 8% 8% 8% 30,000 48,000 78,000 45,500 72,800 118,300 23,750 38,000 61,750 99,250 158,800 258,050 Variable Expenses: Shipping Other Expenses Total Variable Expenses Fixed Expenses Salaries and Wages Advertising Prepaid Insurance Depreciation Total Fixed Expenses Total Selling and Admin Expenses 85,000 50,000 3,000 25,000 163,000 241,000 85,000 50,000 3,000 25,000 163,000 281,300 85,000 50,000 3,000 25,000 163,000 224,750 255,000 150,000 9,000 75,000 489,000 747,050 Less Noncash Items (Depreciation and Prepaid Ins) Total Cash Disbursements 28,000 213,000 28,000 253,300 28,000 196,750 84,000 663,050 Prepaid Insurance That Is Expensed During the Quarter Depreciation Expense Recognized During the Quarter $ $ 9,000 75,000