Assignment 1: Budgeting and Balanced Scorecard - AU ACC202
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M3_A2_Discussion.docxRunning head: COSTS 1
COSTS 2
Cost Drive for Daycare Center
Student’s name
Instructor’s name
Course
Date
Little Angels Daycare Center Costs
The daycare center will need some materials and labor in order to provide the required care services. The facility will hold children of ages 3 months to 5 years. Some materials required include educational supplies like toys and books that will cost roughly $1,500 ($1,000 toys and 500 books), indoor equipment like cribs and CD player will cost approximately $2,350, outdoor equipment like playground equipment such as slides and swings will cost approximately $2,150, office furniture will cost roughly $1,450 (five office chairs and two office tables), kitchen supplies will cost roughly $1,000 that include water storage tanks, and housekeeping equipment will cost roughly $400. This will total to $8,850.
The small facility is expected to hold a maximum of 20 children per month. It will offer baby-sitting services as well as learning services with a well planned curriculum. Two teachers will take care of baby-sitting services and one teacher for learning services. The average pay will $17,850 per year. Overhead costs include non-labor indirect expenses such as utilities and rent.
