ACC Final Project help
chelseamckinney2
MilestoneThree.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 | |
| COMPANY PROFILE TAB | |
| Determine a company name. Be creative (e.g. "Inspiring Dog Care") | |
| Pick a location (e.g. "Chicago") | |
| Define your company's vision and mission for how your business will add value to the community | |
| 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#HomeCompany Profile
| MILESTONE 1 - Company Profile | |
| Company Name | Doggie Delights |
| Location | Aiken, SC |
| Vision | Become the go to facility for all dog lovers in the area to come to and provide them with the best quailty services. Provide knowledge to all of our employees in order to better serve and constantly improve the quality of service we offer our pets and pet owners. |
| Mission | Our mission is to care for your pet in the best way possible when you can't. We provide a unique social experience for dogs and create the a new standard for dog care. We have set out to create a facility that we would want for our own furry friends, making sure that it is a fun and safe place to play during the day and secure at night. We also ensure that your pet will receive the best quaility grooming treatments to make things easier on you as a pet owner and allow youo to spend more quality time with your furry friend! |
ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing3.xml#HomeCost Classification
| Doggie Delights | ||||||
| MILESTONE 1 - Cost Classification Exercise | ||||||
| INSTRUCTIONS: | ||||||
| Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. Other costs have been provided for you. | ||||||
| The fixed and variable cost classifications have been provided for you. For more information see Objective 1 in Chapter 5. | ||||||
| Item/Cost | Direct Material | Direct Labor | Overhead | Period Costs | Fixed | Variable |
| Groomer | x | x | ||||
| Day care attendant | x | x | ||||
| Receptionist | x | x | ||||
| Kennel attendant | x | x | ||||
| Food and water bowls | x | x | ||||
| Depreciation on kennels | x | x | ||||
| Rent | x | x | ||||
| Utilties and insurance | x | x | ||||
| Grooming tub 48" | x | |||||
| Depreciation on heating system | x | x | ||||
| Clippers | x | x | ||||
| Shampoo (Crystal Clear: five-gallon pail) | x | x | ||||
| Towels | x | x | ||||
| Scissors (7-inch straight, ear & nose) | x | x | ||||
| Toys (used in day care only) | x | x | ||||
| Cleaning products (used throughout) | x | x | ||||
| Dryer | x | |||||
| Dog Grooming Arm | x | |||||
| Flooring for daycare | x | |||||
| 12 Kennels | x | |||||
| Heating System | x | |||||
| Salon Tuff Capri Mobile Carry Cart | x | |||||
| Cage bank | x | |||||
| grooming Table | x | |||||
| Loan | x | |||||
| Installation of fencing | x | |||||
| Fencing for Daycare area | x |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing4.xml#HomeVariable_Fixed
| Doggie Delights | |||
| MILESTONE 1 - Variable & Fixed Cost Exercise | |||
| INSTRUCTIONS: | |||
| Determine the per unit cost for each dog. | |||
| Fill in the blanks to get the per unit cost and fixed cost of each service. | |||
| Based on 5 grooms per day | |||
| GROOMING | |||
| Item | Variable Costs | Item | Fixed Costs |
| Shampoo | $ 1.04 | Groomer | $ 2,080.00 |
| Clipper(s) | 1.37 | Rent | 30.95 |
| Bowls | 0.72 | Loan | 20.00 |
| Towels | 5.83 | Utilities and Insurance | 28.57 |
| Scissors | 1.01 | Depreciation on heating system | 3.95 |
| Cleaning Products: Odoban | 2.08 | ||
| Cleaning Products: Simple Green | 2.36 | ||
| Draw | 200.00 | ||
| Total Variable Costs | $ 9.97 | Total Fixed Costs | $ 2,367.91 |
| Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attendant. | |||
| DAY CARE | |||
| Item | Variable Costs | Item | Fixed Costs |
| Day care attendant | $ 2.88 | Rent | $ 232.14 |
| Toys | 0.27 | Loan | 150.00 |
| Bowls | 0.10 | Utilities and Insurance | 214.29 |
| Towels | 1.40 | Depreciation on heating system | 29.64 |
| Cleaning Products: Odoban | 15.59 | ||
| Cleaning Products: Simple Green | 16.78 | ||
| Draw | 200.00 | ||
| Total Variable Costs | $ 4.65 | Total Fixed Costs | $ 858.44 |
| Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. | |||
| BOARDING | |||
| Item | Variable Costs | Item | Fixed Costs |
| Kennel attendant | $ 5.62 | Depreciation on kennels | $ 80.00 |
| Bowls | 0.86 | Rent | 386.90 |
| Towels | 0.87 | Loan | 250.00 |
| Utilities and Insurance | 357.14 | ||
| Depreciation on heating system | 49.40 | ||
| Cleaning Products: Odoban | 25.98 | ||
| Cleaning Products: Simple Green | 29.55 | ||
| Draw | 200.00 | ||
| Total Variable Costs | $ 7.35 | Total Fixed Costs | $ 1,378.97 |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing5.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/drawing6.xml#HomeContribution Margin Analysis
| Doggie Delights | |||
| MILESTONE 2 - Contribution Margin per Unit & Contribution Margin Ratio | |||
| INSTRUCTIONS: | |||
| Select a price from the scenarios below and compute the contribution for each service based on your selected price. | |||
| Variable cost per unit comes from your Variable_Fixed tab completed in Milestone 1. | |||
| SCENARIO (choose one from each category): | |||
| Dog Day Care | |||
| 1. With pricing at $18 per dog per day, you can expect to have 22 dogs per day. | |||
| 2. With pricing at $20 per dog per day, you can expect to have 15 dogs per day. | |||
| 3. With pricing at $25 per dog per day, you can expect to have 10 dogs per day. | |||
| Overnight Boarding | |||
| 1. With pricing at $25 per dog per day, you can expect to have 12 dogs per day. | |||
| 2. With pricing at $28 per dog per day, you can expect to have 10 dogs per day. | |||
| 3. With pricing at $30 per dog per day, you can expect to have 7 dogs per day. | |||
| Basic Groom | |||
| 1. With pricing at $25 per dog per day, you can expect to have 5 dogs per day. | |||
| 2. With pricing at $30 per dog per day, you can expect to have 4 dogs per day. | |||
| 3. With pricing at $35 per dog per day, you can expect to have 3 dogs per day. | |||
| DAY CARE | BOARDING | GROOMING | |
| Sales Price per Unit | $ 18.00 | $ 25.00 | $ 25.00 |
| Variable Cost per Unit | 4.65 | 7.35 | 9.97 |
| Contribution Margin | $ 13.35 | $ 17.65 | $ 15.03 |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing7.xml#HomeBreak-Even Analysis
| Doggie Delights | |||
| MILESTONE 2 - Break-Even Analysis | |||
| INSTRUCTIONS: | |||
| Show all steps and calculations to determine the break-even. | |||
| Determine the break-even for the target profit levels as outlined in the instructions. | |||
| Break-even = Fixed Costs / Contribution Margin | |||
| DAY CARE | BOARDING | GROOMING | |
| Sales Price | $ 18.00 | $ 25.00 | $ 25.00 |
| Fixed Costs | $ 858 | $ 1,379 | $ 2,368 |
| Contribution Margin | $ 13.35 | $ 17.65 | $ 15.03 |
| Break-even Units (round up) | 65 | 79 | 158 |
| Target Profit | $ 417.00 | $ 583.00 | $ 1,000.00 |
| Break-even Units (round up) | 96 | 112 | 225 |
| Target Profit | $ 667.00 | $ 909.00 | $ 1,500.00 |
| Break-even Units (round up) | 115 | 130 | 258 |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing8.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/drawing9.xml#HomeCOS Schedule
| Doggie Delights | |
| MILESTONE 3 - Statement of Cost of Services | |
| INSTRUCTIONS: | |
| The following are the actual numbers for January: | |
| Materials | |
| Purchased $5,000 of Materials | |
| Consumed 40% of those purchased materials | |
| Direct Labor | |
| Direct Labor was $6,240 | |
| Overhead | |
| Overhead was $2,800 | |
| Doggie Delights | |
| Statement of Cost of Services | |
| For the Month Ended January 31, xxxx | |
| Beginning Work in Process Inventory | 0 |
| Direct Materials: | |
| Materials - Beginning | 0 |
| Add: Purchases for month of January | $ 5,000.00 |
| Materials Available for Use | 5,000 |
| Deduct: Ending Materials | 3,000 |
| Materials Used | $ 2,000.00 |
| Direct Labor | 6,240 |
| Overhead | 2,800 |
| Total Service Costs | $ 11,040.00 |
| Deduct: Ending Work in Process Inventory | 0 |
| Cost of Services | $ 11,040 |
| * Cost of Goods Sold = Cost of Services | |
| There is no finished goods inventory to maintain. |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing10.xml#HomeIncome Statement
| Doggie Delights | |
| MILESTONE 3 - Income Statement | |
| INSTRUCTIONS: | |
| Complete the Statement in proper form | |
| Revenue will be provided in an Announcement at the end of Module 4 | |
| (based on actual number of services for your pricing levels) | |
| Additional Information necessary to complete the Income Statement: | |
| General & Administrative Salaries paid = $1,200 | |
| Advertising = $100 | |
| Cleaning Products = $120 | |
| Depreciation = $83 | |
| Rent = $650 | |
| Loan = $420 | |
| Utilities & Insurance = $600 | |
| Doggie Delights | |
| Income Statement | |
| For the Month Ended January 31, xxxx | |
| Revenue: | |
| Grooming | $ 3,000 |
| Day Care | 11,880 |
| Boarding | 9,000 |
| Tota Revenue | $ 23,880 |
| Cost of Services * | 11,040 |
| Gross Profit | $ 12,840 |
| Expenses: | |
| G&A Salaries | $ 1,200 |
| Advertising | 100 |
| Cleaning Products | 120 |
| Depreciation | 83 |
| Rent | 650 |
| Loan | 420 |
| Utilities and Insurance | 600 |
| Total Expenses | $ 3,173 |
| Net Income / Loss | $ 9,667 |
| * Cost of Goods Sold = Cost of Services | |
| There is no finished goods inventory to maintain. | |
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing11.xml#HomeVariances
| Doggie Delights | ||||
| MILESTONE 3 - Variance Analysis | ||||
| INSTRUCTIONS: | ||||
| Prepare the variances and identify whether they are favorable or unfavorable. | ||||
| The below website will provide further assistance with variances: | ||||
| http://accounting-simplified.com/management/variance-analysis/material/price.html | ||||
| DATA FOR VARIANCE ANALYSIS: | ||||
| Standard Hours / Qty | Standard Rate | Actual Hours / Qty | Actual Rate | |
| Grooming Labor | 150 | $ 12.00 | 180 | $ 11.50 |
| Grooming Materials | 1,000 | $ 2.00 | 1,200 | $ 3.00 |
| Variance | Favorable/ Unfavorable | |||
| Groomer Direct Labor Time Variance | ||||
| (Actual Hours - Standard Hours) x Standard Rate | $ 360.00 | Unfavorable | ||
| Groomer Direct Labor Rate Variance | ||||
| (Actual Rate - Standard Rate) x Actual Hours | $ (90.00) | Favorable | ||
| Direct Materials Quantity/Efficiency Variance | ||||
| (Actual Quantity - Standard Quantity) x Standard Price | $ 400.00 | Unfavorable | ||
| Direct Materials Price Variance | ||||
| (Actual Price - Standard Price) x Actual Quantity | $ 1,200.00 | Unfavorable | ||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing12.xml#Home http://accounting-simplified.com/management/variance-analysis/material/price.html
