Managerial Accounting Project
hulksmashech
ACC202CompletedMilestone3.xlsxInstructions
| Southern New Hampshire University | |||||||||||
| College of Continuing Education (COCE) | |||||||||||
| ACC202 - Managerial Accounting | |||||||||||
| MILESTONE 1 (Due in Module 2) | MILESTONE 2 (Due in Module 4) | MILESTONE 3 (Due in Module 5) | |||||||||
| 1. | 1. | 1. | |||||||||
| Name | Choose a price range and calculate: | Create a Cost of Goods Manufactured Schedule | |||||||||
| Location | Grooming | ||||||||||
| Vision | Day Care | ||||||||||
| Mission | Boarding | ||||||||||
| 2. | 2. | 2. | |||||||||
| Identify the following: | Calculate the break-even units | Create an Income Statement | |||||||||
| Direct Materials | Grooming | Revenue will be provided end of week 4 | |||||||||
| Diret Labor | Day Care | ||||||||||
| Manufacturing Overhead | Boarding | ||||||||||
| Period Costs | Calculate the break-even for target profits | ||||||||||
| 3. | Grooming | 3. | |||||||||
| Day Care | |||||||||||
| Calculate the Variable & Fixed Costs for: | Boarding | Calculate for the Grooming line: | |||||||||
| Grooming | Direct Labor Time Variance | ||||||||||
| Day Care | Direct Labor Rate Variance | ||||||||||
| Boarding | Direct Materials Efficiency Variance | ||||||||||
| Direct Materials Price Variance |
ACC202 - MANAGERIAL ACCOUNTING
Company Profile
/xl/drawings/drawing1.xml#CompanyProfileVariable & Fixed Costs
/xl/drawings/drawing1.xml#VariableFixedCostsCost Classification
/xl/drawings/drawing1.xml#CostClassificationContribution Margin
/xl/drawings/drawing1.xml#ContributionMarginBreak-Even Analysis
/xl/drawings/drawing1.xml#BreakevenAnalysisCOGM Schedule
/xl/drawings/drawing1.xml#COGMScheduleIncome Statement
/xl/drawings/drawing1.xml#COGMScheduleVariances
/xl/drawings/drawing1.xml#VariancesInstructions Milestone 1
/xl/drawings/drawing1.xml#InstructionsMilestone1Instructions Milestone 2
/xl/drawings/drawing1.xml#'Instructions%20-%20Milestone%202'!InstructionsMilestone2Instructions Milestone 3
/xl/drawings/drawing1.xml#'Instructions%20-%20Milestone%203'!InstructionsMilestone3Instructions - Milestone 1
| Southern New Hampshire University | ||||
| College of Continuing Education (COCE) | ||||
| ACC202 - Managerial Accounting | ||||
| INSTRUCTIONS FOR MILESTONE 1 (Due Week 2) | ||||
| IMPORTANT NOTE: | ||||
| Make sure to completely review the Rubric for Milestone 1 | ||||
| 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 (Blue Tabs): | ||||
| GENERAL | ||||
| You plan to open a pet services business that will offer dog grooming, day care and boarding | ||||
| COST CLASSIFICATION | ||||
| Accurately classify all of your costs (direct material, direct labor, manufacturing overhead, period costs) | ||||
| Fixed & Variable cost designation is provided | ||||
| VARIABLE & FIXED COSTS | ||||
| Determine your per unit cost per dog for grooming, day care and boarding | ||||
| OPERATIONAL & COST INFORMATION: | ||||
| For simplicity, base all calculations using 30 days in each month | ||||
| OPERATIONAL DATA | ||||
| Grooming: | ||||
| The Groomer can groom 5 dogs a day, 5 days a week | ||||
| Each grooming takes 1.5 labor hours | ||||
| Day Care: | ||||
| The Day Care can house 10 large dogs and 12 small dogs daily. | ||||
| Day Care is offered 6 days a week | ||||
| Boarding: | ||||
| There are 12 kennels (single dog only). | ||||
| Boarding (kennel services) is offered every day | ||||
| Facilities: | ||||
| The Grooming facility is 200 square feet | ||||
| The Boarding facility is 2,500 square feet | ||||
| The Day Care facility is 1,500 square feet | ||||
| General: | ||||
| Loan for start-up costs - monthly payment of $420; in effect immediately; limited cash and loan funding - used angel investors | ||||
| Modest monthly draw of $600 a month for first year; should be divided evenly amoung the services (grooming, day care, boarding) | ||||
| SALARY & HIRING DATA | ||||
| Groomer (Allison) - $12.00 an hour, 40 hours a week | ||||
| Day Care Attendant (Beverly) - $9.00 per hour, based on need | ||||
| Receptionist (Cathie) - $8.50 per hour, 30 hours a week | ||||
| Kennel Attendant (Ben) - $11.50 per hour, based on need | ||||
| OTHER COST DATA | ||||
| Grooming: | ||||
| Dog Grooming Arm - $300 | . | |||
| Grooming Table - $900 | ||||
| Grooming Tub - $2,800 | ||||
| Clippers - $136.99; can be used for 100 grooms | ||||
| Shampoo - $103.96 per 5-gallon pail; can be used for 100 grooms | ||||
| Salon Tuff Capri Mobile Carry Cart - $90 | ||||
| Scissors (7 inch straight) - $194.99; used for 200 grooms | ||||
| Scissors (ear and nose) - $7.49; used for 200 grooms | ||||
| Day Care: | ||||
| Fencing for Day Care area - $1,249 | ||||
| Fencing Installation - $1,000 | ||||
| Toys - $3.29 per 6 pack; one toy will last for two dogs in day care per day | ||||
| Rubberized Flooring for Day Care - $3,800 | ||||
| Boarding: | ||||
| 12 Kennels; Depreciation is $80 per month | ||||
| General: | ||||
| Food & Water bowls - $3.59 per unit | ||||
| Day Care - two bowls last for every 75 dogs that attend daycare | ||||
| Boarding - two bowls last for every 100 dogs boarded; two bowls per kennel | ||||
| Grooming - each bowl lasts for 20 grooms and you need 4 bowls at all times | ||||
| Towels - $34.99 per 12 pack | ||||
| Day Care - 12 towels for every 25 dogs | ||||
| Boarding - 12 towels for every 40 dogs | ||||
| Grooming - 2 towels for every groom per day | ||||
| Heating System - $10,000; Depreciation is $83 per month; Allocate based on square footage | ||||
| Rent - $650 per month; Allocate based on square footage | ||||
| Utilities / Insurance - $600 per month; Allocate based on square footage | ||||
| Cage Bank - $2,200 per set of 5 | ||||
| Dryer - $1,250 | ||||
| Cleaning Products | ||||
| Odoban - $14.55 per gallon; Each area wil dilute 1 oz to 1 gallon of water; Allocate based on square footage | ||||
| Simple Green - $15.66 per gallon; Each area will dilute 1 oz to 1 gallon of water; Allocate based on square footage | ||||
| . |
ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing2.xml#HomeCost Classification
| Milestone One - Cost Classification | ||||||
| INSTRUCTIONS: | ||||||
| Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs. | ||||||
| The Fixed and Variable cost classifications have been provided for you. | ||||||
| Item/Cost | Direct Material | Direct Labor | Overhead | Period Costs | Fixed | Variable |
| Salary - Collar maker | x | x | ||||
| Salary - Leash maker | x | x | ||||
| Salary - Harness maker | x | x | ||||
| Salary - Receptionist | x | |||||
| High-tensile strength nylon webbing | x | x | ||||
| Polyester/nylon ribbons | x | x | ||||
| Buckles made of cast hardware | x | x | ||||
| Depreciation on sewing machines | x | x | ||||
| Rent | x | x | ||||
| Utilities and insurance | x | x | ||||
| Scissors, thread, and cording | x | x | ||||
| Price tags | x | x | ||||
| Office supplies | x | |||||
| Oter business equipment | x | |||||
| Loan payment | x | x | ||||
| Salary to self | x | x | ||||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing3.xml#HomeVariable and Fixed Costs
| Milestone One - Variable and Fixed Costs | ||||||||||||
| Collars | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 4.00 | Collar maker's salary (monthly) | $ 2,773.33 | |||||||||
| Polyester/nylon ribbons | $ 18.00 | Depreciation on sewing machines | $ 165.00 | |||||||||
| Buckles made of cast hardware | $ 2.00 | Rent | $ 750.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 600.00 | |||||||||
| Scissors, thread, and cording | $ 1,200.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Collar | $ 24.10 | Total Fixed Costs | $ 5,838.33 | |||||||||
| Leashes | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 24.00 | Leash maker's salary (monthly) | $ 2,773.33 | |||||||||
| Polyester/nylon ribbons | $ 18.00 | Depreciation on sewing machines | $ 165.00 | |||||||||
| Buckles made of cast hardware | $ 1.50 | Rent | $ 750.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 600.00 | |||||||||
| Scissors, thread, and cording | $ 1,200.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Leash | $ 43.60 | Total Fixed Costs | $ 5,838.33 | $ 5,838.33 | ||||||||
| Harnesses | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 24.00 | Harness maker's salary | $ 2,773.33 | |||||||||
| Polyester/nylon ribbons | $ 18.00 | Depreciation on sewing machines | $ 165.00 | |||||||||
| Buckles made of cast hardware | $ 4.00 | Rent | $ 750.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 600.00 | |||||||||
| Scissors, thread, and cording | $ 1,200.00 | |||||||||||
| Loan | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Harness | $ 46.10 | Total Fixed Costs | $ 5,838.33 | |||||||||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing4.xml#HomeInstructions - Milestone 2
| 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 analysis |
| CONTRIBUTION MARGIN ANALYSIS |
| Select a price for each service (grooming, day care, boarding) |
| Determine the variable cost from the Variable_Fixed tab for each service |
| Calculate the contribution margin for each service based on your sales price and the variable cost for that service |
| BREAK-EVEN ANALYSIS |
| Determine the fixed cost from the Variable_Fixed tab for each service |
| Fixed & Variable cost designation is provided |
| Calculate the break-even units (round up) for each service |
| Calculate the break-even units (round up) for suggested target profit levels for each service |
ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing5.xml#HomeContribution Margin Analysis
| Milestone Two - Contribution Margin Analysis | |||||
| COLLARS | LEASHES | HARNESSES | |||
| Sales Price per Unit | $ 500.00 | $ 500.00 | $ 500.00 | ||
| Variable Cost per Unit | 24.10 | 43.60 | 46.10 | ||
| 0.95 | 0.91 | 0.91 | |||
| Contribution Margin | |||||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing6.xml#HomeBreak-Even Analysis
| Milestone Two - Break-Even Analysis | ||||||
| COLLARS | LEASHES | HARNESSES | ||||
| Sales Price | $ 500.00 | $ 500.00 | $ 500.00 | |||
| Fixed Costs | $ 5,838 | $ 5,838 | $ 5,838 | |||
| Contribution Margin | $ 0.95 | $ 0.91 | $ 0.91 | |||
| Break-Even Units (round up) | 12.00 | 12.00 | 12.00 | |||
| Target Profit | $ 300.00 | $ 400.00 | $ 500.00 | |||
| Break-Even Units (round up) | 511.00 | 519.00 | 528.00 | |||
| Target Profit | $ 500.00 | $ 600.00 | $ 650.00 | |||
| Break-Even Units (round up) | 528.00 | 486.00 | 486.00 | |||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing7.xml#HomeInstructions - Milestone 3
| 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 analysis |
| Revenue data needed for the Income Statement will be provided at the end of Module 4 |
| COST OF SERVICES PROVIDED SCHEDULE |
| Use the data at the top of the schedule to complete the report |
| INCOME STATEMENT |
| Use the data at the top of the schedule to complete the report |
| Use the data from your Cost of Services Provided Schedule |
| VARIANCES |
| Use the data at the top of the schedule to calculate the following: |
| Variance |
| Favorable / Unfavorable |
ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing8.xml#HomeCOGS
| Milestone Three - Statement of Cost of Goods Sold | ||
| Beginning Work in Process Inventory | 24000 | |
| Direct Materials: | ||
| Materials: Beginning | 22 | |
| Add: Purchases for month of January | $ 1,200 | |
| Materials available for use | 22 | |
| Deduct: Ending materials | - 0 | |
| Materials Used | $ 22 | |
| Direct Labor | 8,320 | |
| Overhead | 8,100 | |
| Total Costs | $ 16,420 | |
| Deduct: Ending Work in Process Inventory | 1233 | |
| Cost of Goods Sold | $ 23,967.00 | |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing9.xml#HomeIncome Statement
| Milestone Three - Income Statement | ||
| Revenue: | ||
| Collars | $ 500 | |
| Leashes | $500 | |
| Harnesses | $500 | |
| Total Revenue: | $ 1,500 | |
| Cost of goods sold | 23,967 | |
| Gross profit | $ 22,467 | |
| Expenses: | ||
| General and administrative salaries | $ 8,320 | |
| Depreciation | 165 | |
| Rent | 750 | |
| Utilities and insurance | 600 | |
| Scissors, thread, and cording | $ 1,200.00 | |
| Loan | 183 | |
| Total Expenses | $ 11,218.33 | |
| Net Income/Loss | $ 11,248.67 | |
&8ACC202 - MANAGERIAL ACCOUNTING
Variances
| Milestone Three - Variance Analysis | ||||||
| Data for Variance Analysis: | ||||||
| Budgeted (Standard) Hours/Qty | Budgeted (Standard) Rate | Actual Hours/Qty | Actual Rate | |||
| Labor | 38 | $ 16.00 | 2 | $ 0.43 | ||
| Materials | 3 | $ 7.17 | 0 | $ 0.45 | ||
| Variances for Collar Sales | ||||||
| Variance | Favorable/ Unfavorable | |||||
| Direct Labor Time Variance | ||||||
| (Actual Hours - Standard Hours) x Standard Rate | $ (562.50) | Favorable | ||||
| Direct Labor Rate Variance | ||||||
| (Actual Rate - Standard Rate) x Actual Hours | $ (36.50) | Unfavorable | ||||
| Direct Materials Quantity/Efficiency Variance | ||||||
| (Actual Quantity - Standard Quantity) x Standard Price | $ 41.81 | Favorable | ||||
| Direct Materials Price Variance | ||||||
| (Actual Price - Standard Price) x Actual Quantity | $ (3.02) | Favorable | ||||
&8ACC202 - MANAGERIAL ACCOUNTING
