ACC 202 Project Guidelines and Rubric
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ACC202ProjectWorkbook_Ortiz123.xlsxCost 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 and 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
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/xl/drawings/drawing1.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 and 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 and 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 and 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
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/xl/drawings/drawing2.xml#HomeContribution Margin Analysis
| Milestone Two: Contribution Margin Analysis | |||||
| COLLARS | LEASHES | HARNESSES | |||
| Sales Price per Unit | $ 28.00 | $ 30.00 | $ 35.00 | ||
| Variable Cost per Unit | 9.10 | 12.10 | 14.60 | ||
| Contribution Margin | $ 18.90 | $ 17.90 | $ 20.40 | ||
&8ACC202 - MANAGERIAL ACCOUNTING
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/xl/drawings/drawing3.xml#HomeBreak-Even Analysis
| Milestone Two: Break-Even Analysis | ||||||
| COLLARS | LEASHES | HARNESSES | ||||
| Sales Price | $ 28.00 | $ 30.00 | $ 35.00 | |||
| Fixed Costs | 4,028.33 | 4,028.33 | 4,201.67 | |||
| Contribution Margin | $ 18.90 | $ 17.90 | $ 20.40 | |||
| Break-Even Units (round up) | 214.00 | 226.00 | 206.00 | |||
| Target Profit | $ 300.00 | $ 400.00 | $ 500.00 | |||
| Break-Even Units (round up) | 229.00 | 248.00 | 231.00 | |||
| Target Profit | $ 500.00 | $ 600.00 | $ 650.00 | |||
| Break-Even Units (round up) | 240.00 | 259.00 | 238.00 | |||
&8ACC202 - MANAGERIAL ACCOUNTING
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/xl/drawings/drawing4.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 | - 0 | |
| 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
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/xl/drawings/drawing5.xml#HomeIncome Statement
| Milestone Three: Income Statement | ||
| Revenue: | ||
| Collars | $ 13,200 | |
| Leashes | 12,320 | |
| Harnesses | 12,500 | |
| Total Revenue: | $ 37,020 | |
| Cost of goods sold | 28,258 | |
| Gross profit | $ 8,762 | |
| Expenses: | ||
| General and administrative salaries | $ 1,950 | |
| Office supplies | 200 | |
| Other business equipment | 150 | |
| Total Expenses | $ 2,300.00 | |
| Net Income/Loss | $ 6,462.00 | |
&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 | 8 | $ 15.00 | 9 | $ 16.50 | ||
| Materials | 660 | $ 8.00 | 660 | $ 10.00 | ||
| Variance | Favorable or Unfavorable | |||||
| Direct Labor Time Variance | ||||||
| (Actual Hours - Standard Hours) x Standard Rate | $ 15.00 | Unfavorable | ||||
| Direct Labor Rate Variance | ||||||
| (Actual Rate - Standard Rate) x Actual Hours | $ 990.00 | Unfavorable | ||||
| Direct Materials Quantity/Efficiency Variance | ||||||
| (Actual Quantity - Standard Quantity) x Standard Price | $ - 0 | Favorable | ||||
| Direct Materials Price Variance | ||||||
| (Actual Price - Standard Price) x Actual Quantity | $ 1,320.00 | Unfavorable | ||||
&8ACC202 - MANAGERIAL ACCOUNTING
