What possible causes are there in this industry for such high variances? Describe at least Three.

 Describe at least Two general economic causes which may have caused these variances. 

 

JOE'S STORAGE BUSINESS FOR YEARS ENDING 30TH JUNE 2020, 2021, 2022 2020 Sales Cost of goods sold Gross profit Other Operating Income Dividends Received Interest received Rental Received Total Other Income TOTAL INCOME Overhead Expenses Salaries & Wages Sales salaries Sales Commission Warehouse wages Warehouse wages overtime Office wages Office wages overtime Management salaries Superannuation Advertising Warehouse Lifts and Cranes: Fuel Repairs & Maintenance Depreciation Warehouse rent Office Expenses: Office rent Electricity Phone & Internet Equipment repairs & maintenance Marketing & Sales Expenses: Local travel Interstate travel Staff amenities Stationery Printing Depreciation - Office Equipment Total Expenses NET PROFIT/LOSS $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ S $ $ $ $ $ $ $ $ $ $ Budget Jul 940,000 $ 611,000 $ 329,000 $ 1,500 $ 850 $ 24,000 $ 26,350 $ 355,350 $ 25,000 $ 28,200 $ 24,000 $ $ 12,000 $ $ 38,000 $ 14,364 $ 18,800 $ 1,200 $ 1,000 $ 3,750 $ 45,000 $ 6,000 $ 3,200 $ 2,000 $ 1,600 $ 1,200 $ 4,000 $ 800 $ 500 $ 750 $ 1,600 $ 232,964 $ 122,386 $ Actual 1,050,000 735,000 315,000 24,000 24,000 339,000 29,000 31,500 24,800 4,700 13,600 4,300 38,000 13,861 21,000 1,420 600 3,750 45,000 6,000 4,200 1,960 460 100 760 1,284 420 1,600 248,315 90,685 Variances Fav/Unfav $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2021 Budget Aug 1,090,000 $ 708,500 $ 381,500 $ 1,500 $ 850 $ 20,000 $ 22,350 $ 403,850 $ 35,750 $ 32,700 $ 25,000 $ $ 25,000 $ $ 38,000 $ 16,763 $ 21,800 1,600 $ 1,000 $ 3,750 $ 45,000 $ 6,000 $ 3,200 $ 2,000 $ 1,600 $ 1,200 $ 4,000 $ 800 $ 500 $ 750 $ 1,600 $ 268,013 $ 135,837 $ Actual 995,050 656,733 338,317 20,000 20,000 358,317 40,600 29,852 25,240 3,960 25,240 6,200 38,000 17,964 19,901 1,824 130 3,750 45,000 6,000 7,516 3,948 170 520 6,240 1,240 314 1,690 2,000 287,299 71,018 Variances Fav/Unfav $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2022 Budget Sept 1,100,000 $ 726,000 $ 374,000 $ 1,500 $ 850 $ 24,000 $ 26,350 $ 400,350 $ 41,000 $ 51,000 $ 24,000 $ $ 26,000 $ $ 38,000 $ 18,050 $ 22,000 $ 1,200 $ 1,000 $ 3,750 $ 45,000 $ 6,000 $ 3,200 $ 2,000 $ 1,600 $ 1,200 $ 4,000 $ 800 $ 500 $ 750 $ 1,600 $ 292,650 $ 107,700 $ Actual 985,000 679,650 305,350 5,800 220 24,000 30,020 335,370 39,550 47,678 24,240 4,600 28,200 7,600 38,000 18,988 19,700 2,040 2,156 3,750 45,000 6,000 2,820 4,196 2,940 620 12,900 620 174 330 2,000 314,102 21,269 Variances Fav/Unfav