MILESTONE THREE

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Numbers Sheet Name Numbers Table Name Excel Worksheet Name

Table 1 Table 1 Table 1

Company Profile Table 1 Company Profile

Cost Classification Table 1 Cost Classification

Variable_Fixed Table 1 Variable_Fixed

Milestone 2 Table 1 Milestone 2

Contribution Margin Analysis Table 1 Contribution Margin Analysis

Break-Even Analysis Table 1 Break-Even Analysis

Table 32 Table 1 Table 32

Table 33 Table 1 Table 33

Table 34 Table 1 Table 34

Table 35 Table 1 Table 35

Table 36 Table 1 Table 36

Table 37 Table 1 Table 37

Table 38 Table 1 Table 38

Table 39 Table 1 Table 39

Table 40 Table 1 Table 40

Table 41 Table 1 Table 41

Table 42 Table 1 Table 42

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Table 43 Table 1 Table 43

Table 44 Table 1 Table 44

Table 45 Table 1 Table 45

Table 46 Table 1 Table 46

Table 47 Table 1 Table 47

Table 48 Table 1 Table 48

Table 49 Table 1 Table 49

Table 50 Table 1 Table 50

Table 51 Table 1 Table 51

Table 52 Table 1 Table 52

Table 53 Table 1 Table 53

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Southern New Hampshire University College of Continuing Education (COCE) ACC202 - Managerial Accounting

MILESTONE 1 (Due in Module 2)

Instructions Milestone 1

1. Company Profile

Name Location Vision Mission

2. Cost Classification

Identify the following: Direct Materials Diret Labor

Manufacturing Overhead Period Costs

3. Calculate the Variable & Fixed Costs for: Grooming Day Care Boarding

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Southern New Hampshire University College of Continuing Education (COCE) ACC202 - Managerial Accounting

MILESTONE 2 (Due in Module 4)

Instructions Milestone 2

1. Contribution Margin

Choose a price range and calculate: Grooming Day Care Boarding

2. Break-Even Analysis

Calculate the break-even units Grooming Day Care Boarding Calculate the break-even for target profi

t s

Grooming Day Care Boarding

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Southern New Hampshire University College of Continuing Education (COCE) ACC202 - Managerial Accounting

MILESTONE 3 (Due in Module 5) Instructions Milestone 3 1. COGM Schedule Create a Cost of Goods Manufactured Sch 2. Income Statement Create an Income Statement Revenue will be provided end of week 4 3. Variances Calculate for the Grooming line: Direct Labor Time

Varia Direct Labor Rate Varia Direct Materials Efficiency Variance Direct Materials Price Variance

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MILESTONE 1 - Company Profile Compnay Name : Paws Day Care & Grooming Location: Los Angeles Vision : To be the best pet services businesses offering value-for-money services. Mission: To provide high-quality, value-for-money, conitent services for pets.

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Paws Day Care & Grooming MILESTONE 1 - Cost Classification Exercise

INSTRUCTIONS: Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. Other costs have been provided for you. The fixed and variable cost classifications have been provided for you. For more information see Objective 1 in Chapte

Item/Cost Direct Material Direct Labor

Overhead

Groomer x Day care attendant x Receptionist x Kennel attendant x Food and water bowls x Depreciation on kennels x Rent x Utilties and insurance x Grooming tub 48"

Depreciation on heating system x Clippers x Shampoo (Crystal Clear: five-gallon pail) x Towels x Scissors (7-inch straight, ear & nose) x Toys (used in day care only) x Cleaning products (used throughout) x Dryer

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Paws Day Care & Grooming MILESTONE 1 - Cost Classification Exercise

Period Costs Fixed Variable

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Paws Day Care & Grooming MILESTONE 1 - Variable & Fixed Cost Exercise

INSTRUCTIONS: Determine the per unit cost for each dog. Fill in the blanks to get the per unit cost and fixed cost of each service.

Based on 5 grooms per day GROOMING

Item Variable Costs Item Fixed Costs

Shampoo $ 1.04 Groomer $ 2,080.00 Clipper(s) 1.37 Rent 30.95 Bowls 0.72 Loan 20.00 Towels 5.83 Utilities and Insurance 28.57 Scissors 1.01 Depreciation on heating system 3.95 Cleaning Products: Odoban 2.08 Cleaning Products: Simple Green 2.36 Draw 200.00

Total Variable Costs $ 9.97 Total Fixed Costs $ 2,367.91

Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attendant.

DAY CARE

Item Variable Costs Item Fixed Costs

Day care attendant $ 2.88 Rent $ 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance 214.29 Towels 1.40 Depreciation on heating system 29.64 Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 Draw 200.00

Total Variable Costs $ 4.65 Total Fixed Costs $ 858.44

Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING

Item Variable Costs Item Fixed Costs

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Kennel attendant $ 5.62 Depreciation on kennels $ 80.00 Bowls 0.86 Rent 386.90 Towels 0.87 Loan 250.00 Utilities and Insurance 357.14 Depreciation on heating system 49.40 Cleaning Products: Odoban 25.98 Cleaning Products: Simple Green 29.55 Draw 200.00

Total Variable Costs $ 7.35 Total Fixed Costs $ 1,378.97

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Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attendant.

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Southern New Hampshire University College of Continuing Education (COCE) ACC202 - Managerial Accounting

INSTRUCTIONS FOR MILESTONE 2 (Due Week 4)

IMPORTANT NOTE: Make sure to completely review the Rubric for Milestone 2 Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7

ITEMS TO COMPLETE FOR THIS MILESTONE (Green Tabs): GENERAL Use data from Milestone 1 in your analysi CONTRIBUTION MARGIN ANALYSIS Select a price for each service (grooming, day care, boarding Determine the variable cost from the Variable_Fixed tab for each servi Calculate the contribution margin for each service based on your sales price and the variable cost for that serv BREAK-EVEN ANALYSIS Determine the fixed cost from the Variable_Fixed tab for each service Fixed & Variable cost designation is provi Calculate the break-even units (round up) for each Calculate the break-even units (round up) for suggested target profit levels for each servic

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Paws Day Care & Grooming MILESTONE 2 - Contribution Margin per Unit & Contribution Margin Ratio

INSTRUCTIONS:

Select a price from the scenarios below and compute the contribution for each service based on your selected pric Variable cost per unit comes from your Variable_Fixed tab completed in Milestone 1.

SCENARIO (choose one from each category): Dog Day Care 1. With pricing at $18 per dog per day, you can expect to have 22 dogs per day. 2. With pricing at $20 per dog per day, you can expect to have 15 dogs per day. 3. With pricing at $25 per dog per day, you can expect to have 10 dogs per day. Overnight Boarding 1. With pricing at $25 per dog per day, you can expect to have 12 dogs per day. 2. With pricing at $28 per dog per day, you can expect to have 10 dogs per day. 3. With pricing at $30 per dog per day, you can expect to have 7 dogs per day. Basic Groom 1. With pricing at $25 per dog per day, you can expect to have 5 dogs per day. 2. With pricing at $30 per dog per day, you can expect to have 4 dogs per day. 3. With pricing at $35 per dog per day, you can expect to have 3 dogs per day.

DAY CARE BOARDING

Sales Price per Unit Variable Cost per Unit

$ 18 4.65

$ 25 7.35

Contribution Margin $ 13.35 $ 17.65

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Paws Day Care & Grooming MILESTONE 2 - Contribution Margin per Unit & Contribution Margin Ratio

INSTRUCTIONS:

Select a price from the scenarios below and compute the contribution for each service based on your selected pric Variable cost per unit comes from your Variable_Fixed tab completed in Milestone 1.

GROOMING

$ 25 9.97

$ 15.03

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Paws Day Care & Grooming

MILESTONE 2 - Break-Even Analysis

INSTRUCTIONS: Show all steps and calculations to determine the break-even. Determine the break-even for the target profit levels as outlined in the instructions. Break-even = Fixed Costs / Contribution Margin

DAY CARE BOARDING

Sales Price $ 18 $ 25

Fixed Costs $ 858.44 $ 1,378.97

Contribution Margin $ 13.35 $ 17.65

Break-even Units (round up) 64 78

Target Profit $ 417.00 $ 583.00

Break-even Units (round up) 95 111

Target Profit $ 667.00 $ 909.00

Break-even Units (round up) 114 129

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Paws Day Care & Grooming

MILESTONE 2 - Break-Even Analysis

GROOMING

$ 25

$ 2,367.91

$ 15.03

157

$ 1,000.00

224

$ 1,500.00

257

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Southern New Hampshire University College of Continuing Education (COCE) ACC202 - Managerial Accounting

INSTRUCTIONS FOR MILESTONE 3 (Due Week 5)

IMPORTANT NOTE: Make sure to completely review the Rubric for Milestone 3 Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7

ITEMS TO COMPLETE FOR THIS MILESTONE (Purple Tabs): GENERAL Use data from Milestone 1 and Milestone 2 in your a Revenue data needed for the Income Statement will be provided at the end of Mo COST OF SERVICES PROVIDED SCHEDULE Use the data at the top of the schedule to complete the repo INCOME STATEMENT Use the data at the top of the schedule to complete the repo Use the data from your Cost of Services Provided Sc VARIANCES Use the data at the top of the schedule to calculate the follo Favorable / Unfa

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ACC202 - MANAGERIAL ACCOUNTING

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XYZ Corporation MILESTONE 3 - Statement of Cost of Services

INSTRUCTIONS: The following are the actual numbers for January: Materials Purchased $5,000 of Materials Consumed 40% of those purchased ma Direct Labor Direct Labor was $6,240 Overhead Overhead was $2,800

XYZ Corporation Statement of Cost of Services For the Month Ended January 31, xxxx Beginning Work in Process Inventory 0 Direct Materials: Materials - Beginning 0 Add: Purchases for month of January Materials Available for Use Deduct: Ending Materials Materials Used Direct Labor Overhead Total Service Costs Deduct: Ending Work in Process Inventory Cost of Services

* Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain.

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* Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain.

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XYZ Corporation MILESTONE 3 - Income Statement

INSTRUCTIONS: Complete the Statement in proper form Revenue will be provided in an Announcement at the end of Module 4 (based on actual number of

services for your pricing le Additional Information necessary to complete the Income Statement: General & Administrative Salaries paid = $1,200 Advertising = $100 Cleaning Products = $120 Depreciation = $83 Rent = $650 Loan = $420 Utilities & Insurance = $600

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XYZ Corporation Income Statement For the Month Ended January 31, xxxx Revenue: Grooming $ - Day Care - Boarding - Tota Revenue $ - Cost of Services * - Gross Profit $ - Expenses: G&A Salaries $ - Advertising - Cleaning Products - Depreciation - Rent - Loan - Utilities and Insurance - Total Expenses $ - Net Income / Loss $ - * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain.

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XYZ Corporation MILESTONE 3 - Variance Analysis

INSTRUCTIONS: Prepare the variances and identify whether they are favorable or unfavorable. The below website will provide further

assistance with variances: http://accounting-simplified.com/management/variance-analysis/material/price.html DATA FOR VARIANCE ANALYSIS: Standard Standard Actual Actual Hours / Qty Rate Hours / Qty

Rate Grooming Labor 150 $ 12.00 180 $ 11.50 Grooming Materials 1,000 $ 2.00 1,200 $ 3.00

Favorable/ Variance Unfavorable Groomer Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ - Groomer Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours $ - Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price $ - Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity $ -

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http://accounting-simplified.com/management/variance-analysis/material/price.html

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ACC202 - MANAGERIAL ACCOUNTING

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