Accounting Project
DegreeinProgress
ProjectWorkbook.xlsxInstructions
| Southern New Hampshire University | |||||||||||
| College of Continuing Education (COCE) | |||||||||||
| ACC202 - Managerial Accounting | |||||||||||
| MILESTONE 1 (Due in Module 2) | MILESTONE 2 (Due in Module 4) | MILESTONE 3 (Due in Module 5) | |||||||||
| 1. | 1. | 1. | |||||||||
| Name | Choose a price range and calculate: | Create a Cost of Goods Manufactured Schedule | |||||||||
| Location | Grooming | ||||||||||
| Vision | Day Care | ||||||||||
| Mission | Boarding | ||||||||||
| 2. | 2. | 2. | |||||||||
| Identify the following: | Calculate the break-even units | Create an Income Statement | |||||||||
| Direct Materials | Grooming | Revenue will be provided end of week 4 | |||||||||
| Diret Labor | Day Care | ||||||||||
| Manufacturing Overhead | Boarding | ||||||||||
| Period Costs | Calculate the break-even for target profits | ||||||||||
| 3. | Grooming | 3. | |||||||||
| Day Care | |||||||||||
| Calculate the Variable & Fixed Costs for: | Boarding | Calculate for the Grooming line: | |||||||||
| Grooming | Direct Labor Time Variance | ||||||||||
| Day Care | Direct Labor Rate Variance | ||||||||||
| Boarding | Direct Materials Efficiency Variance | ||||||||||
| Direct Materials Price Variance |
ACC202 - MANAGERIAL ACCOUNTING
Company Profile
/xl/drawings/drawing1.xml#CompanyProfileVariable & Fixed Costs
/xl/drawings/drawing1.xml#VariableFixedCostsCost Classification
/xl/drawings/drawing1.xml#CostClassificationContribution Margin
/xl/drawings/drawing1.xml#ContributionMarginBreak-Even Analysis
/xl/drawings/drawing1.xml#BreakevenAnalysisCOGM Schedule
/xl/drawings/drawing1.xml#COGMScheduleIncome Statement
/xl/drawings/drawing1.xml#COGMScheduleVariances
/xl/drawings/drawing1.xml#VariancesInstructions Milestone 1
/xl/drawings/drawing1.xml#InstructionsMilestone1Instructions Milestone 2
/xl/drawings/drawing1.xml#'Instructions%20-%20Milestone%202'!InstructionsMilestone2Instructions Milestone 3
/xl/drawings/drawing1.xml#'Instructions%20-%20Milestone%203'!InstructionsMilestone3Instructions - Milestone 1
| Southern New Hampshire University | ||||
| College of Continuing Education (COCE) | ||||
| ACC202 - Managerial Accounting | ||||
| INSTRUCTIONS FOR MILESTONE 1 (Due Week 2) | ||||
| IMPORTANT NOTE: | ||||
| Make sure to completely review the Rubric for Milestone 1 | ||||
| Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7) | ||||
| ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs): | ||||
| GENERAL | ||||
| You plan to open a pet services business that will offer dog grooming, day care and boarding | ||||
| COST CLASSIFICATION | ||||
| Accurately classify all of your costs (direct material, direct labor, manufacturing overhead, period costs) | ||||
| Fixed & Variable cost designation is provided | ||||
| VARIABLE & FIXED COSTS | ||||
| Determine your per unit cost per dog for grooming, day care and boarding | ||||
| OPERATIONAL & COST INFORMATION: | ||||
| For simplicity, base all calculations using 30 days in each month | ||||
| OPERATIONAL DATA | ||||
| Grooming: | ||||
| The Groomer can groom 5 dogs a day, 5 days a week | ||||
| Each grooming takes 1.5 labor hours | ||||
| Day Care: | ||||
| The Day Care can house 10 large dogs and 12 small dogs daily. | ||||
| Day Care is offered 6 days a week | ||||
| Boarding: | ||||
| There are 12 kennels (single dog only). | ||||
| Boarding (kennel services) is offered every day | ||||
| Facilities: | ||||
| The Grooming facility is 200 square feet | ||||
| The Boarding facility is 2,500 square feet | ||||
| The Day Care facility is 1,500 square feet | ||||
| General: | ||||
| Loan for start-up costs - monthly payment of $420; in effect immediately; limited cash and loan funding - used angel investors | ||||
| Modest monthly draw of $600 a month for first year; should be divided evenly amoung the services (grooming, day care, boarding) | ||||
| SALARY & HIRING DATA | ||||
| Groomer (Allison) - $12.00 an hour, 40 hours a week | ||||
| Day Care Attendant (Beverly) - $9.00 per hour, based on need | ||||
| Receptionist (Cathie) - $8.50 per hour, 30 hours a week | ||||
| Kennel Attendant (Ben) - $11.50 per hour, based on need | ||||
| OTHER COST DATA | ||||
| Grooming: | ||||
| Dog Grooming Arm - $300 | . | |||
| Grooming Table - $900 | ||||
| Grooming Tub - $2,800 | ||||
| Clippers - $136.99; can be used for 100 grooms | ||||
| Shampoo - $103.96 per 5-gallon pail; can be used for 100 grooms | ||||
| Salon Tuff Capri Mobile Carry Cart - $90 | ||||
| Scissors (7 inch straight) - $194.99; used for 200 grooms | ||||
| Scissors (ear and nose) - $7.49; used for 200 grooms | ||||
| Day Care: | ||||
| Fencing for Day Care area - $1,249 | ||||
| Fencing Installation - $1,000 | ||||
| Toys - $3.29 per 6 pack; one toy will last for two dogs in day care per day | ||||
| Rubberized Flooring for Day Care - $3,800 | ||||
| Boarding: | ||||
| 12 Kennels; Depreciation is $80 per month | ||||
| General: | ||||
| Food & Water bowls - $3.59 per unit | ||||
| Day Care - two bowls last for every 75 dogs that attend daycare | ||||
| Boarding - two bowls last for every 100 dogs boarded; two bowls per kennel | ||||
| Grooming - each bowl lasts for 20 grooms and you need 4 bowls at all times | ||||
| Towels - $34.99 per 12 pack | ||||
| Day Care - 12 towels for every 25 dogs | ||||
| Boarding - 12 towels for every 40 dogs | ||||
| Grooming - 2 towels for every groom per day | ||||
| Heating System - $10,000; Depreciation is $83 per month; Allocate based on square footage | ||||
| Rent - $650 per month; Allocate based on square footage | ||||
| Utilities / Insurance - $600 per month; Allocate based on square footage | ||||
| Cage Bank - $2,200 per set of 5 | ||||
| Dryer - $1,250 | ||||
| Cleaning Products | ||||
| Odoban - $14.55 per gallon; Each area wil dilute 1 oz to 1 gallon of water; Allocate based on square footage | ||||
| Simple Green - $15.66 per gallon; Each area will dilute 1 oz to 1 gallon of water; Allocate based on square footage | ||||
| . |
ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing2.xml#HomeCost Classification
| Milestone One - Cost Classification | ||||||
| INSTRUCTIONS: | ||||||
| Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs. | ||||||
| The Fixed and Variable cost classifications have been provided for you. | ||||||
| Item/Cost | Direct Material | Direct Labor | Overhead | Period Costs | Fixed | Variable |
| Salary - Collar maker | × | x | ||||
| Salary - Leash maker | × | x | ||||
| Salary - Harness maker | × | x | ||||
| Salary - Receptionist | × | × | ||||
| High-tensile strength nylon webbing | × | x | ||||
| Polyester/nylon ribbons | × | x | ||||
| Buckles made of cast hardware | × | x | ||||
| Depreciation on sewing machines | × | x | ||||
| Rent | × | x | ||||
| Utilities and insurance | × | x | ||||
| Scissors, thread, and cording | × | x | ||||
| Price tags | × | x | ||||
| Office supplies | × | × | ||||
| Other business equipment | × | × | ||||
| Loan payment | × | x | ||||
| Salary to self | × | x | ||||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing3.xml#HomeContribution Margin Analysis
| Milestone Two - Contribution Margin Analysis | |||||||
| COLLARS | LEASHES | HARNESSES | |||||
| Sales Price per Unit | $ 28.00 | $ 30.00 | $ 35.00 | Selling price chosen per collar is 28, per leash is 30, and per harness is 35 | |||
| Variable Cost per Unit | 9.10 | 12.10 | 14.60 | VC per unit per collar=the total VC initially calculated in the VC and FC sheet=9.1;Vc PER Leash is equal to the total VC per leash calculated in the fixed cost and variable costsection=12.1, VC per harness is the total Vc PER HARNESS calculated in the VC and FC tab=14.6 | |||
| Contribution Margin | $ 18.90 | $ 17.90 | $ 20.40 | Contribution margin per collar =sales price (28)- Variable costs(9.1)= 18.9 | |||
| Contribution margin per leash= sales price(30-12.1)=17.9 | |||||||
| Contribution margin per harness =sales price per harness(35-14.6)= 20.4 | |||||||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing4.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 | High tensile nylon = 12/3=4 | Collar maker's salary = 40hours×16×4.33 Weeks=2771 | |||||||
| Polyester/nylon ribbons | $ 3.00 | Depreciation on sewing machines | $ 55.00 | polyester nylon =9/3=3 | Depreciation = 165/3= 55 | |||||||
| Buckles made of cast hardware | $ 2.00 | Rent | $ 250.00 | Buckles made of cast hardware = 0.5×4=2 | Rent = 500/1500 squarefootage=0.33×750 = 250 | |||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | Utilities and insurance = 600/1500×500 = 200 | ||||||||
| Scissors, thread, and cording | $ 400.00 | Scissors, thread and coding = 1200/3=400 | ||||||||||
| Loan payment | $ 183.33 | |||||||||||
| Salary to self | $ 166.67 | |||||||||||
| Total Variable Costs per Collar | $ 9.10 | Total Fixed Costs | $ 4,028.33 | Total variable costs per collar =4+3+2+0.1=9.1 | Total fixed costs per collar =2773+55+250+200+400+183+167= 4028.33 | |||||||
| Leashes | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Leash maker's salary (monthly) | $ 2,773.33 | High tensile strength=12/2 = 6 | Leash makers salary = 40 hours×16 per hour × 4.33 weeks = 2773.33 | |||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | Polyester nylon = 9/2 = 4.5 | Depre ciation on sewing machines = 165/3 = 55 | |||||||
| Buckles made of cast hardware | $ 1.50 | Rent | $ 250.00 | Buckles made of cast hardware = 3×0.5 =1.5 | Rent = 500/1500 multiplied by750 = 250 | |||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | price tags are already given as 0.1 | Utilities and insurance = (600/1500)×500=200 | |||||||
| Scissors, thread, and cording | $ 400.00 | Scissors thread and coding = 1200/3 = 400 | ||||||||||
| Loan payment | $ 183.33 | Loan payment = 550/3 = 183.33 | ||||||||||
| Salary to self | $ 166.67 | Salary to self = 500/3 = 166.666 | ||||||||||
| Total Variable Costs per Leash | $ 12.10 | Total Fixed Costs | $ 4,028.33 | Total Vc per leash= 6+4.5+1.5+0.1 = 12.1 | Total FC per leash = 2773+55+250+200+400+183+167 = 4028.3 | |||||||
| Harnesses | ||||||||||||
| Item | Variable Cost/Item | Item | Fixed Costs | |||||||||
| High-tensile strength nylon webbing | $ 6.00 | Harness maker's salary | $ 2,946.40 | High tensile strength nylon= 12/2 = 6 | Harness makers salary = 40 hours×17per hour×4.333 = 2946.4 | |||||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | Polyester ribbopns =9/2 =4.5 | Depreciation on sewing machine = 165/3 = 55 | |||||||
| Buckles made of cast hardware | $ 4.00 | Rent | $ 250.00 | Buckles made of cast hardware = 8×0.5 = 4 | Rent = 500/1500, answer multiplied by 750 = 250 | |||||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | Price tags are already given =0.1 | Utilities and insurance = 600/1500 answer multiplied by 500 = 200 | |||||||
| Scissors, thread, and cording | $ 400.00 | Scissors,thread and coding = 1200/3 = 400 | ||||||||||
| Loan | $ 183.33 | Loan = 550/3 = 183.33 | ||||||||||
| Salary to self | $ 166.67 | Salary to self = 500/3 = 166.666 | ||||||||||
| Total Variable Costs per Harness | $ 14.60 | Total Fixed Costs | $ 4,201.40 | Total VC per herness =6+4.5+4+0.1= | Total FC per herness = 2946+55+250+200+400+183.33+166.67 = 4201.4 | |||||||
&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#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 | 4,201.40 | Fixed costs = the calculated fixed costs of each item i.e collar, leash and harness in the FC and VC sheet =4028,4028,and 4201 respectively | ||||||
| Contribution Margin | $ 18.90 | $ 17.90 | $ 20.40 | |||||||
| Break even units =FC/contribution margin for example BE for Collars =(4028/18.9)=213.14, for leash =4028/17.9=225; for harness =4201/20.4=206 | ||||||||||
| Break-Even Units (round up) | 213 | 225 | 206 | |||||||
| Target Profit | $ 300.00 | $ 400.00 | $ 500.00 | |||||||
| Break-Even Units (round up) | 229 | 247 | 230 | Break even units=(Target profit+fixed costs)/contribution margin for collar B E =(300+4028)/18.9=229; FOR LEASH BE =(400+4028)17.9=247.4; for harness BE=(500+4201)/20.4=230 | ||||||
| Target Profit | $ 500.00 | $ 600.00 | $ 650.00 | |||||||
| Break-Even Units (round up) | 240 | 259 | 238 | BEP = (target progit+FC)/Cont margin; | ||||||
| Bep for collars=(500+4028)/18.9=239.59, BE for leash =(600+4028.33)/17.9=258.57; BE for harness =(650+4201)/20.4=237.8 | ||||||||||
| BE for leash=(600+4028.33)/17.9=258.57 | BE for leash=(600+4028.33)/17.9=258.58 | BE for leash=(600+4028.33)/17.9=258.59 |
&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 | Purchases are given in the word document as 20000 | ||
| Materials available for use | 20,000 | Materials available=the purchased materials | ||
| Deduct: Ending materials | 4,000 | Ending materials=20000-(80%*20000)=4,000 | ||
| Materials Used | 16,000 | Materilas used =Beginning mtrls(20000)-Ending materials(4,000)=16,000 | ||
| Direct Labor | 8493 | Direct labor is given in the word document as 8493 | ||
| Overhead | 3,765 | Overhead costs are given in the word document as 3765 | ||
| Total Costs | $ 28,258 | Total costs=Material used+direct labor+overhead)=16000+8493+3765=28258 | ||
| Deduct: Ending Work in Process Inventory | 0 | ending work in progress is zero as indicated in word file | ||
| Cost of Goods Sold | $ 28,258 | Cogs is equal to beginning inventory+total costs-ending inventory=0+28258-0=28258 | ||
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
/xl/drawings/drawing9.xml#HomeIncome Statement
| Milestone Three - Income Statement | ||||
| Revenue: | Revenue =sales price*No of units per day*No of days (20) | |||
| Collars | $ 12,880 | Revenue for collar= 28*23*20=12880 | ||
| Leashes | 10,800 | Revenue for leash=30*18*20=10800 | ||
| Harnesses | 14,000 | Revenue for harness=35*20*20=14000 | ||
| Total Revenue: | $ 37,680 | Total revenue=12880+10800+14000)= 37680 | ||
| Cost of goods sold | 28,258 | cogs is equal to the cogs calculated in the cogs tab=28258 | ||
| Gross profit | $ 9,422 | Gross profit =Revenue-COGS =(37680-28258)=9422 | ||
| Expenses: | ||||
| General and administrative salaries | $ 1,950 | General and administrative salaries=to the amount given in word document for receiptionist=1950 | ||
| Office supplies | 200 | Office supplies given is 200 | ||
| Other business equipment | 150 | Other business equipment given is 150 in the word file | ||
| Total Expenses | $ 2,300.00 | Total expenses=1950+200+150= 2300 | ||
| Net Income/Loss | $ 7,122.00 | Net Income=Gross profit(9422)-Total expenses(2300)=7122 | ||
&8ACC202 - MANAGERIAL ACCOUNTING
Variances
| Milestone Three - Variance Analysis | Budgeted standard rate is the original rate that a collar make was paid in milestone one which was 16.00 | |||||
| Budgeted standard hours/quantity is the original hours which was 8 mulitiplied by 20 days=160 | ||||||
| Actual rate is the rate being paid now which increased to 16.5 | ||||||
| Data for Variance Analysis: | Actual hours/quantity is the hours that a collar maker has wo work which is 9*20=180 | |||||
| Budgeted (Standard) Hours/Qty | Budgeted (Standard) Rate | Actual Hours/Qty | Actual Rate | |||
| Labor | 160 | $ 16.00 | 180 | $ 16.50 | ||
| Actual quantity= units sold*number of days=23*20=460; using the number of units sold that was used in the income statement, which was 23 | ||||||
| Budgeted standard quantity, considering sixty more were sold for this month so for the previous month=(460-60)=400 | ||||||
| Materials | 400 | $ 9.10 | 460 | $ 10.00 | Budgeted standard material for collar is the total variable costs calculated for collar which was 9.1 | |
| Actual rate for collar is the new direct material for collar given as 10.00 in the word document | ||||||
| Variances for Collar Sales | ||||||
| Variance | Favorable/ Unfavorable | |||||
| Direct Labor Time Variance | Direct labor time variance=(180-160)*16=320 | |||||
| (Actual Hours - Standard Hours) x Standard Rate | $ 320.00 | Unfavorable | Direct labor time variance is unfavorable because actual labor hours are higher than standard hours | |||
| Direct Labor Rate Variance | ||||||
| (Actual Rate - Standard Rate) x Actual Hours | $ 90.00 | Unfavorable | Direct labor rate variance=(16.5-16)*180=90 | |||
| Direct labor rate variance is unfavorable because actual rates are higher than the standard rate | ||||||
| Direct Materials Quantity/Efficiency Variance | ||||||
| (Actual Quantity - Standard Quantity) x Standard Price | $ 546.00 | Unfavorable | Direct material quantity=(460-400)*9.1=546 | |||
| Direct material quantity variance is unfavorable becvause the actual materials used are more than the standard quantity. | ||||||
| Direct Materials Price Variance | ||||||
| (Actual Price - Standard Price) x Actual Quantity | $ 414.00 | Unfavorable | Direct material price variance= (10-9.1)*460=414 | |||
| Direct materials price variance is unfavorable because the actual price of materials used is greater than the standard price. | ||||||
&8ACC202 - MANAGERIAL ACCOUNTING
