3.1 Calculate the amounts indicated by (a)–(c) on the Debtors' Collection Schedule provided in the ANSWER BOOK - NSC Accounting - Question 3 - 2021 - Paper 2

For the payments to creditors in January 2022:

• Payment = 456,000 - 91,200 = 364,800

So, the payment to creditors is R 364,800.

The Payment for cleaning services in January 2022 is also calculated:

• Payment for cleaning = (15,510/165) * 105 = 9,870.

Thus, the payment for cleaning services is R 9,870.

1. Sales Capacity: For December 2021, sales were reported at 798,000 (budgeted level minus details) versus 707,000 actual sales: This shows a decrease of R 91,000 or 11.4%, indicating capacity is not fully utilized.

2. Customer Demand: The sales trend indicates an average of 230 customers, but actual average customers per worker is 175, which is significantly lesser, suggesting an excess of staff.

The repair staff members feel overworked because:

• They have to manage more customers than expected; 175 was recorded, where their capacity was just 136, marking a 94% increase in workload.

• They also have had additional unexpected work demands increasing their workload, resulting in dissatisfaction.

1. Training: Train the sales staff member to do minor repair tasks to alleviate pressure from repair staff.

2. Hiring Additional Staff: Hire additional temporary or casual workers to distribute the workload evenly among the remaining staff.

The forecasted cash sales were R 336,800, while actual sales were lower, suggesting poor performance. The expected credit sales were R 317,000 versus actual sales of 240,000. Hence, cash sales were 20% of total sales compared to expected levels, which should raise concern for Brian.

Fuel consumption is 2.6% of total budgeted sales (20,800/798,000) and is slightly higher than 2% at 1.2% showing inefficiencies in monitoring fuel use. Additionally, consumable stores are being used poorly; actual figures demonstrate a budget vs. actual discrepancy that reflects poor inventory control.