7-1 Investor Report
SchoolHelp_2021
ACC202InvestorReportTemplate.pptx[Insert Company Name]
Investor Report
Prepared by Alexis Waterman
Instructions: Replace all text in brackets with your own information.
1
Introduction
[Outline your company’s business and your vision for its future.]
2
Introduce the company and its business. What is your vision for the future of the business? What do you hope to achieve? Where do you see the company in five years or ten?
2
Purpose
[Explain the purpose of this report and what you hope to convey about the company and its financials.]
3
[What do you plan to communicate, and why should your investors pay attention? In other words, try to persuade your investors that the accounting information you are about to share is important.]
3
Methods and Approach
[Explain some management accounting methods and how your report and the data it represents adheres to industry standards and the AICPA code of ethics.]
4
[Explain some management accounting methods you used to determine your costing strategy, evaluate your financial information, etc., and explain how your methods of generating information adhere to industry standards and AICPA’s code of ethics. In other words, why should your investors trust that you are delivering accurate financial data and that your decision-making process has been ethical?]
4
Financial Strategy
5
5
Costing System
[Outline why the job order costing system works best for the business.]
6
[Explain in detail the use of job order costing for this business. Why is it suited for your business? Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense.]
6
Selling Prices
[List the selling price you chose for each product.]
7
[Explain and defend the selling prices that you established for each product. Why did you choose these selling prices? Be sure to reference your cost-volume-profit analysis in your defense]
7
Contribution Margin
8
[Share and explain your contribution margin per unit. How did you arrive at these numbers? Be sure to reference your cost-volume-profit analysis in your defense. ]
8
Target Profits
9
[Specify the break-even points you determined for achieving different target profit levels. Then, explain and defend the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense.]
9
Financial Statements
10
10
Statement of Cost of Goods Sold
11
[Compare the actual cost of goods sold over the last month and evaluate the company’s performance against the budgeted benchmarks. Are the numbers close to what you expected? Interpret the performance and explain what happened.]
11
Income Statement
12
[Based on your income statement, logically interpret the business’s performance against the provided benchmarks. Did the company do as well as expected? Explain what happened.]
12
Variances
13
[Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed?]
13
Significance of Variances
[Share a summary of your variance analysis. Were the variances favorable or unfavorable?]
14
[Evaluate the significance of the variances. Are the variances favorable or unfavorable? What does it mean? Explain whether and how your evaluation will affect your budgeting and planning decisions for the next month or quarter.]
14
References
[Include any references cited in your paper in full APA format. Don’t forget to include in-text citations as well.]
15
Milestone Two - Contribution Margin Analysis
COLLARSLEASHESHARNESSES
Sales Price per Unit20.00$ 22.00$ 25.00$
Variable Cost per Unit9.10 12.10 14.60
Contribution Margin10.90$ 9.90$ 10.40$
Instructions
| 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 | |||||
| Other 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 | $ 3.00 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 2.00 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Collar | $ 9.10 | Total Fixed Costs | $ 4,028.33 | |||||||||
| Leashes | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Leash maker's salary (monthly) | $ 2,773.33 | |||||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 1.50 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Leash | $ 12.10 | Total Fixed Costs | $ 4,028.33 | |||||||||
| Harnesses | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Harness maker's salary | $ 2,946.67 | |||||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 4.00 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Harness | $ 14.60 | Total Fixed Costs | $ 4,201.67 | |||||||||
&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 | $ 20.00 | $ 22.00 | $ 25.00 | ||
| Variable Cost per Unit | 9.10 | 12.10 | 14.60 | ||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | ||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing6.xml#HomeBreak-Even Analysis
| Milestone Two - Break-Even Analysis | ||||||
| COLLARS | LEASHES | HARNESSES | ||||
| Sales Price | $ 20.00 | $ 22.00 | $ 25.00 | |||
| Fixed Costs | $ 4,028 | $ 4,028 | $ 4,202 | |||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | |||
| Break-Even Units (round up) | 369.57 | 406.90 | 404.01 | |||
| Target Profit | $ 300.00 | $ 400.00 | $ 500.00 | |||
| Break-Even Units (round up) | 397.09 | 447.31 | 452.08 | |||
| Target Profit | $ 500.00 | $ 600.00 | $ 650.00 | |||
| Break-Even Units (round up) | 415.44 | 467.51 | 466.51 | |||
&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 | $ - 0 | |
| Direct Materials: | ||
| Materials: Beginning | 0 | |
| Add: Purchases for month of January | $ 20,000 | |
| Materials available for use | 20,000 | |
| Deduct: Ending materials | 4,000 | |
| Materials Used | 16,000 | |
| Direct Labor | 8,493 | |
| Overhead | 3,765 | |
| Total Costs | $ 28,258 | |
| Deduct: Ending Work in Process Inventory | 0 | |
| Cost of Goods Sold | $ 28,258 | |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing9.xml#HomeIncome Statement
| Milestone Three - Income Statement | ||
| Revenue: | ||
| Collars | $ 13,200 | |
| Leashes | 12,320 | |
| Harnesses | 12,500 | |
| Total Revenue: | $ 38,020 | |
| Cost of goods sold | $ 28,258 | |
| Gross profit | $ 9,762 | |
| Expenses: | ||
| General and administrative salaries | $ 2,450 | |
| Office supplies | 200 | |
| Other business equipment | 150 | |
| Total Expenses | $ 2,800.00 | |
| Net Income/Loss | $ 6,962.00 | |
&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 | 160 | $ 16.00 | 180 | $ 16.50 | ||
| Materials | 600 | $ 9.10 | 660 | $ 10.00 | ||
| Variances for Collar Sales | ||||||
| Variance | Favorable/ Unfavorable | |||||
| Direct Labor Time Variance | ||||||
| (Actual Hours - Standard Hours) x Standard Rate | $ 320.00 | Unfavorable | ||||
| Direct Labor | Rate | Variance | ||||
| (Actual Rate - Standard Rate) x Actual Hours | $ 90.00 | Unfavorable | ||||
| Direct Materials Quantity/Efficiency Variance | ||||||
| (Actual Quantity - Standard Quantity) x Standard Price | $ 546.00 | Unfavorable | ||||
| Direct Materials Price Variance | ||||||
| (Actual Price - Standard Price) x Actual Quantity | $ 594.00 | Unfavorable | ||||
&8ACC202 - MANAGERIAL ACCOUNTING
COLLARSLEASHESHARNESSES
Sales Price20.00$ 22.00$ 25.00$
Fixed Costs4,028$ 4,028$ 4,202$
Contribution Margin10.90$ 9.90$ 10.40$
Break-Even Units (round up)369.57 406.90 404.01
Target Profit300.00$ 400.00$ 500.00$
Break-Even Units (round up)397.09 447.31 452.08
Target Profit500.00$ 600.00$ 650.00$
Break-Even Units (round up)415.44 467.51 466.51
Instructions
| 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 | |||||
| Other 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 | $ 3.00 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 2.00 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Collar | $ 9.10 | Total Fixed Costs | $ 4,028.33 | |||||||||
| Leashes | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Leash maker's salary (monthly) | $ 2,773.33 | |||||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 1.50 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Leash | $ 12.10 | Total Fixed Costs | $ 4,028.33 | |||||||||
| Harnesses | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Harness maker's salary | $ 2,946.67 | |||||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 4.00 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Harness | $ 14.60 | Total Fixed Costs | $ 4,201.67 | |||||||||
&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 | $ 20.00 | $ 22.00 | $ 25.00 | ||
| Variable Cost per Unit | 9.10 | 12.10 | 14.60 | ||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | ||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing6.xml#HomeBreak-Even Analysis
| Milestone Two - Break-Even Analysis | ||||||
| COLLARS | LEASHES | HARNESSES | ||||
| Sales Price | $ 20.00 | $ 22.00 | $ 25.00 | |||
| Fixed Costs | $ 4,028 | $ 4,028 | $ 4,202 | |||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | |||
| Break-Even Units (round up) | 369.57 | 406.90 | 404.01 | |||
| Target Profit | $ 300.00 | $ 400.00 | $ 500.00 | |||
| Break-Even Units (round up) | 397.09 | 447.31 | 452.08 | |||
| Target Profit | $ 500.00 | $ 600.00 | $ 650.00 | |||
| Break-Even Units (round up) | 415.44 | 467.51 | 466.51 | |||
&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 | $ - 0 | |
| Direct Materials: | ||
| Materials: Beginning | 0 | |
| Add: Purchases for month of January | $ 20,000 | |
| Materials available for use | 20,000 | |
| Deduct: Ending materials | 4,000 | |
| Materials Used | 16,000 | |
| Direct Labor | 8,493 | |
| Overhead | 3,765 | |
| Total Costs | $ 28,258 | |
| Deduct: Ending Work in Process Inventory | 0 | |
| Cost of Goods Sold | $ 28,258 | |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing9.xml#HomeIncome Statement
| Milestone Three - Income Statement | ||
| Revenue: | ||
| Collars | $ 13,200 | |
| Leashes | 12,320 | |
| Harnesses | 12,500 | |
| Total Revenue: | $ 38,020 | |
| Cost of goods sold | $ 28,258 | |
| Gross profit | $ 9,762 | |
| Expenses: | ||
| General and administrative salaries | $ 2,450 | |
| Office supplies | 200 | |
| Other business equipment | 150 | |
| Total Expenses | $ 2,800.00 | |
| Net Income/Loss | $ 6,962.00 | |
&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 | 160 | $ 16.00 | 180 | $ 16.50 | ||
| Materials | 600 | $ 9.10 | 660 | $ 10.00 | ||
| Variances for Collar Sales | ||||||
| Variance | Favorable/ Unfavorable | |||||
| Direct Labor Time Variance | ||||||
| (Actual Hours - Standard Hours) x Standard Rate | $ 320.00 | Unfavorable | ||||
| Direct Labor | Rate | Variance | ||||
| (Actual Rate - Standard Rate) x Actual Hours | $ 90.00 | Unfavorable | ||||
| Direct Materials Quantity/Efficiency Variance | ||||||
| (Actual Quantity - Standard Quantity) x Standard Price | $ 546.00 | Unfavorable | ||||
| Direct Materials Price Variance | ||||||
| (Actual Price - Standard Price) x Actual Quantity | $ 594.00 | Unfavorable | ||||
&8ACC202 - MANAGERIAL ACCOUNTING
Beginning Work in Process Inventory-$
Direct Materials:
Materials: Beginning0
Add: Purchases for month of January20,000$
Materials available for use20,000
Deduct: Ending materials4,000
Materials Used16,000
Direct Labor8,493
Overhead3,765
Total Costs28,258$
Deduct: Ending Work in Process Inventory0
Cost of Goods Sold28,258$
Instructions
| 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 | |||||
| Other 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 | $ 3.00 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 2.00 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Collar | $ 9.10 | Total Fixed Costs | $ 4,028.33 | |||||||||
| Leashes | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Leash maker's salary (monthly) | $ 2,773.33 | |||||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 1.50 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Leash | $ 12.10 | Total Fixed Costs | $ 4,028.33 | |||||||||
| Harnesses | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Harness maker's salary | $ 2,946.67 | |||||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 4.00 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Harness | $ 14.60 | Total Fixed Costs | $ 4,201.67 | |||||||||
&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 | $ 20.00 | $ 22.00 | $ 25.00 | ||
| Variable Cost per Unit | 9.10 | 12.10 | 14.60 | ||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | ||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing6.xml#HomeBreak-Even Analysis
| Milestone Two - Break-Even Analysis | ||||||
| COLLARS | LEASHES | HARNESSES | ||||
| Sales Price | $ 20.00 | $ 22.00 | $ 25.00 | |||
| Fixed Costs | $ 4,028 | $ 4,028 | $ 4,202 | |||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | |||
| Break-Even Units (round up) | 369.57 | 406.90 | 404.01 | |||
| Target Profit | $ 300.00 | $ 400.00 | $ 500.00 | |||
| Break-Even Units (round up) | 397.09 | 447.31 | 452.08 | |||
| Target Profit | $ 500.00 | $ 600.00 | $ 650.00 | |||
| Break-Even Units (round up) | 415.44 | 467.51 | 466.51 | |||
&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 | $ - 0 | |
| Direct Materials: | ||
| Materials: Beginning | 0 | |
| Add: Purchases for month of January | $ 20,000 | |
| Materials available for use | 20,000 | |
| Deduct: Ending materials | 4,000 | |
| Materials Used | 16,000 | |
| Direct Labor | 8,493 | |
| Overhead | 3,765 | |
| Total Costs | $ 28,258 | |
| Deduct: Ending Work in Process Inventory | 0 | |
| Cost of Goods Sold | $ 28,258 | |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing9.xml#HomeIncome Statement
| Milestone Three - Income Statement | ||
| Revenue: | ||
| Collars | $ 13,200 | |
| Leashes | 12,320 | |
| Harnesses | 12,500 | |
| Total Revenue: | $ 38,020 | |
| Cost of goods sold | $ 28,258 | |
| Gross profit | $ 9,762 | |
| Expenses: | ||
| General and administrative salaries | $ 2,450 | |
| Office supplies | 200 | |
| Other business equipment | 150 | |
| Total Expenses | $ 2,800.00 | |
| Net Income/Loss | $ 6,962.00 | |
&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 | 160 | $ 16.00 | 180 | $ 16.50 | ||
| Materials | 600 | $ 9.10 | 660 | $ 10.00 | ||
| Variances for Collar Sales | ||||||
| Variance | Favorable/ Unfavorable | |||||
| Direct Labor Time Variance | ||||||
| (Actual Hours - Standard Hours) x Standard Rate | $ 320.00 | Unfavorable | ||||
| Direct Labor | Rate | Variance | ||||
| (Actual Rate - Standard Rate) x Actual Hours | $ 90.00 | Unfavorable | ||||
| Direct Materials Quantity/Efficiency Variance | ||||||
| (Actual Quantity - Standard Quantity) x Standard Price | $ 546.00 | Unfavorable | ||||
| Direct Materials Price Variance | ||||||
| (Actual Price - Standard Price) x Actual Quantity | $ 594.00 | Unfavorable | ||||
&8ACC202 - MANAGERIAL ACCOUNTING
Revenue:
Collars13,200$
Leashes12,320
Harnesses12,500
Total Revenue:38,020$
Cost of goods sold28,258$
Gross profit9,762$
Expenses:
General and administrative salaries2,450$
Office supplies200
Other business equipment150
Total Expenses2,800.00$
Net Income/Loss6,962.00$
Instructions
| 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 | |||||
| Other 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 | $ 3.00 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 2.00 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Collar | $ 9.10 | Total Fixed Costs | $ 4,028.33 | |||||||||
| Leashes | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Leash maker's salary (monthly) | $ 2,773.33 | |||||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 1.50 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Leash | $ 12.10 | Total Fixed Costs | $ 4,028.33 | |||||||||
| Harnesses | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Harness maker's salary | $ 2,946.67 | |||||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 4.00 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Harness | $ 14.60 | Total Fixed Costs | $ 4,201.67 | |||||||||
&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 | $ 20.00 | $ 22.00 | $ 25.00 | ||
| Variable Cost per Unit | 9.10 | 12.10 | 14.60 | ||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | ||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing6.xml#HomeBreak-Even Analysis
| Milestone Two - Break-Even Analysis | ||||||
| COLLARS | LEASHES | HARNESSES | ||||
| Sales Price | $ 20.00 | $ 22.00 | $ 25.00 | |||
| Fixed Costs | $ 4,028 | $ 4,028 | $ 4,202 | |||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | |||
| Break-Even Units (round up) | 369.57 | 406.90 | 404.01 | |||
| Target Profit | $ 300.00 | $ 400.00 | $ 500.00 | |||
| Break-Even Units (round up) | 397.09 | 447.31 | 452.08 | |||
| Target Profit | $ 500.00 | $ 600.00 | $ 650.00 | |||
| Break-Even Units (round up) | 415.44 | 467.51 | 466.51 | |||
&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 | $ - 0 | |
| Direct Materials: | ||
| Materials: Beginning | 0 | |
| Add: Purchases for month of January | $ 20,000 | |
| Materials available for use | 20,000 | |
| Deduct: Ending materials | 4,000 | |
| Materials Used | 16,000 | |
| Direct Labor | 8,493 | |
| Overhead | 3,765 | |
| Total Costs | $ 28,258 | |
| Deduct: Ending Work in Process Inventory | 0 | |
| Cost of Goods Sold | $ 28,258 | |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing9.xml#HomeIncome Statement
| Milestone Three - Income Statement | ||
| Revenue: | ||
| Collars | $ 13,200 | |
| Leashes | 12,320 | |
| Harnesses | 12,500 | |
| Total Revenue: | $ 38,020 | |
| Cost of goods sold | $ 28,258 | |
| Gross profit | $ 9,762 | |
| Expenses: | ||
| General and administrative salaries | $ 2,450 | |
| Office supplies | 200 | |
| Other business equipment | 150 | |
| Total Expenses | $ 2,800.00 | |
| Net Income/Loss | $ 6,962.00 | |
&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 | 160 | $ 16.00 | 180 | $ 16.50 | ||
| Materials | 600 | $ 9.10 | 660 | $ 10.00 | ||
| Variances for Collar Sales | ||||||
| Variance | Favorable/ Unfavorable | |||||
| Direct Labor Time Variance | ||||||
| (Actual Hours - Standard Hours) x Standard Rate | $ 320.00 | Unfavorable | ||||
| Direct Labor | Rate | Variance | ||||
| (Actual Rate - Standard Rate) x Actual Hours | $ 90.00 | Unfavorable | ||||
| Direct Materials Quantity/Efficiency Variance | ||||||
| (Actual Quantity - Standard Quantity) x Standard Price | $ 546.00 | Unfavorable | ||||
| Direct Materials Price Variance | ||||||
| (Actual Price - Standard Price) x Actual Quantity | $ 594.00 | Unfavorable | ||||
&8ACC202 - MANAGERIAL ACCOUNTING
Data for Variance Analysis:
Budgeted
(Standard)
Hours/Qty
Budgeted
(Standard)
Rate
Actual
Hours/Qty
Actual
Rate
Labor160 16.00$ 180 16.50$
Materials600 9.10$ 660 10.00$
Variances for Collar Sales
Variance
Favorable/
Unfavorable
Direct Labor Time Variance
(Actual Hours - Standard Hours) x Standard Rate320.00$ Unfavorable
Direct Labor
Rate
Variance
(Actual Rate - Standard Rate) x Actual Hours90.00$ Unfavorable
Direct Materials Quantity/Efficiency Variance
(Actual Quantity - Standard Quantity) x Standard Price546.00$ Unfavorable
Direct Materials Price Variance
(Actual Price - Standard Price) x Actual Quantity594.00$ Unfavorable
Instructions
| 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 | |||||
| Other 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 | $ 3.00 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 2.00 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Collar | $ 9.10 | Total Fixed Costs | $ 4,028.33 | |||||||||
| Leashes | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Leash maker's salary (monthly) | $ 2,773.33 | |||||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 1.50 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Leash | $ 12.10 | Total Fixed Costs | $ 4,028.33 | |||||||||
| Harnesses | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Harness maker's salary | $ 2,946.67 | |||||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | |||||||||
| Buckles made of cast hardware | $ 4.00 | Rent | $ 250.00 | |||||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | |||||||||
| Scissors, thread, and cording | $ 400.00 | |||||||||||
| Loan | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Harness | $ 14.60 | Total Fixed Costs | $ 4,201.67 | |||||||||
&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 | $ 20.00 | $ 22.00 | $ 25.00 | ||
| Variable Cost per Unit | 9.10 | 12.10 | 14.60 | ||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | ||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing6.xml#HomeBreak-Even Analysis
| Milestone Two - Break-Even Analysis | ||||||
| COLLARS | LEASHES | HARNESSES | ||||
| Sales Price | $ 20.00 | $ 22.00 | $ 25.00 | |||
| Fixed Costs | $ 4,028 | $ 4,028 | $ 4,202 | |||
| Contribution Margin | $ 10.90 | $ 9.90 | $ 10.40 | |||
| Break-Even Units (round up) | 369.57 | 406.90 | 404.01 | |||
| Target Profit | $ 300.00 | $ 400.00 | $ 500.00 | |||
| Break-Even Units (round up) | 397.09 | 447.31 | 452.08 | |||
| Target Profit | $ 500.00 | $ 600.00 | $ 650.00 | |||
| Break-Even Units (round up) | 415.44 | 467.51 | 466.51 | |||
&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 | $ - 0 | |
| Direct Materials: | ||
| Materials: Beginning | 0 | |
| Add: Purchases for month of January | $ 20,000 | |
| Materials available for use | 20,000 | |
| Deduct: Ending materials | 4,000 | |
| Materials Used | 16,000 | |
| Direct Labor | 8,493 | |
| Overhead | 3,765 | |
| Total Costs | $ 28,258 | |
| Deduct: Ending Work in Process Inventory | 0 | |
| Cost of Goods Sold | $ 28,258 | |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing9.xml#HomeIncome Statement
| Milestone Three - Income Statement | ||
| Revenue: | ||
| Collars | $ 13,200 | |
| Leashes | 12,320 | |
| Harnesses | 12,500 | |
| Total Revenue: | $ 38,020 | |
| Cost of goods sold | $ 28,258 | |
| Gross profit | $ 9,762 | |
| Expenses: | ||
| General and administrative salaries | $ 2,450 | |
| Office supplies | 200 | |
| Other business equipment | 150 | |
| Total Expenses | $ 2,800.00 | |
| Net Income/Loss | $ 6,962.00 | |
&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 | 160 | $ 16.00 | 180 | $ 16.50 | ||
| Materials | 600 | $ 9.10 | 660 | $ 10.00 | ||
| Variances for Collar Sales | ||||||
| Variance | Favorable/ Unfavorable | |||||
| Direct Labor Time Variance | ||||||
| (Actual Hours - Standard Hours) x Standard Rate | $ 320.00 | Unfavorable | ||||
| Direct Labor | Rate | Variance | ||||
| (Actual Rate - Standard Rate) x Actual Hours | $ 90.00 | Unfavorable | ||||
| Direct Materials Quantity/Efficiency Variance | ||||||
| (Actual Quantity - Standard Quantity) x Standard Price | $ 546.00 | Unfavorable | ||||
| Direct Materials Price Variance | ||||||
| (Actual Price - Standard Price) x Actual Quantity | $ 594.00 | Unfavorable | ||||
&8ACC202 - MANAGERIAL ACCOUNTING
