Managerial accounting

workbookfinalprep.xlsx

Company Profile

Name	Fabulous Dog Kennels
Location	Charllotte NC
Vision	One clean and happy dog, one day at a time.
Mission	To provide the best dog care at the best price.
	Instructions - you create your own company name, location, vision, and mission
	.

Milestone One
							Instructions: For each item or cost, classify as:
	Direct	Direct	Manufacturing	Period				Direct materials, direct labor, manufacturing overhead, or period cost
Item/Cost	Materials	Labor	Overhead	Costs	Fixed	Variable
Groomer					X
Day care attendant						X	The fixed and variable costs classifications have been provided for you. For more information on fixed and variable costs
Kennel attendant						X	see Objective 1 in Chapter 5
Receptionist				x
Rent					X
Grooming table	x
Grooming tub 48"	x
Dog grooming arm (attaches to table)	x
Cage bank: set of five	x
Salon Tuff Capri mobile carry cart	x
Shampoo (Crystal Clear: five-gallon pail)						X
Clipper(s) (two-speed)						X
Scissors (7-inch striaght, ear & nose)						X
Toys (used in day care only)						X
Bowls (used throughout the business)						X
Towels (used throughout the business)						X
Dryer	x
Cleaning products (used throughout)			x		X
Rubberized flooring (day care)	x
Fencing for day care area				x
Installation of fencing				x
12 kennels cost			x
Depreciation on kennels					X
Utilties and Insurance					X
Heating System			x
Depreciation on heating system					X
Loan					X
Draw					X

Milestone One
Determine the per-unit cost per dog			Instructions - fill in the blanks to get the per unit cost and fixed cost of each service.
Grooming
Item	Costs	Item	Costs
Shampoo	$1.04	Groomer	$2,080
Clipper(s)	1.37	Rent	30.95
Bowls	0.72	Loan	20.00
Towels	5.83	Utilties 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	$ 2,367.92
Day Care
Item	Costs	Item	Costs
Day care attendant	2.88	Rent	232.14
Toys	0.27	Loan	150.00
Bowls	0.19	Utilties and Insurance	214.28
Towels	1.40	Depreciation on heating system	29.64
		Cleaning Products: Odoban	15.59
		Cleaning Products: Simple Green	17.73
		Draw	200.00
Total Variable Costs	$ 4.75	Total Fixed Costs	$ 859.39
Boarding
Item	Costs	Item	Costs
Kennel attendant	5.62	Depreciation on kennels	80.00
Bowls	0.86	Rent	386.90
Towels	0.87	Loan	250.00
		Utilties 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	$ 7.36	Total Fixed Costs	$ 1,378.99

Prepare the Contribution Margin per Unit and Contribution Margin Ratio
Grooming		Day Care		Boarding		Contribution Margin Analysis will be based on the pricing levels you choose from the given scenario. For instance, grooming price may be $25, $30, or $35.
Sales Price	$35.00	Sales Price	$ 25.00	Sales Price	$ 30.00
Variable Cost per unit	$ 9.94	Variable Cost per unit	$ 4.75	Variable Cost per unit	$ 7.36
Contribution Margin	$ 75.09	Contribution Margin	$ 205.50	Contribution Margin	$ 158.48
	Instructions - select a price from below and compute the contribution margin for each service based on your selected price. Variable cost per unit come from the Variable_Fixed page

Break-Even Analysis
Instructions - Show all steps and calculations to determine the break-even, as well as the break-even for the target profit levels as outlined in the instructions. Round all decimals UP to next whole number
Grooming		Day Care		Boarding
Break-even Units=	32	Break-even Units=	4	Break-even Units=	15
Fixed Costs		Fixed Costs		Fixed Costs
Cont. Margin		Cont. Margin		Cont. Margin

Business Name
Statement of Cost of Goods Manufactured
For the Month Ended January
Beginning work in process inventory	$ - 0	Instructions - the following are the actual numbers for January
Direct Materials:
Materials - Beginning	$ - 0
Add: Purchases for month of January	$ 5,000.00	Purchased $5,000 in materials and you consumed 40%
Materials Available for use	$ 5,000.00	DL for January amounted to $6240
Deduct: Ending materials	$ 3,000.00	Factory OH 2,800
Materials used in production	$ 2,000.00
		Complete the Statement in proper form
Direct Labor	$ 6,240.00
Factory Overhead	$ 2,800.00
Total Manufacturing OH	$ 11,040.00
Deduct: Ending work in process inv.	$ - 0
Cost of Goods Manufactured	$ 11,040.00

Business Name
Income Statement
For the Month Ended January 31, 2017
Revenue:
Grooming	$ 70.00
Day Care	$ 225.00		For Revenue instructor will provide you with the actual number of services based on your pricing levels
Boarding	$ 180.00	$ 475.00	See the announcement at the end of module 4.
Cost of Goods Sold*	$ 11,040.00
Gross Profit	$ (10,565.00)		Additional information necessary to complete income statement:
Expenses:			General and Administrative Salaries paid $1,200
G&A Salaries	$ 1,200.00		Advertising $100
Advertising	$ 100.00		Cleaning products $120
Telephone	$ - 0		Depreciation $83
Bank Charges	$ - 0		Rent $650
Tax Expense			Loan $420
Rent	$ 650.00		Utilities and insurance $600
Loan	$ 420.00
Utilities and Insurance	$ 600.00
Total Expenses	$ 2,970.00
Net Income/Loss	$ (13,535.00)
*Cost of Goods Sold - same as COGM - there is no finished goods inventory to maintain

Prepare the variance analysis for the following, and show formulas in words and work:
Prepare for 1 month	Significance (e.g., "favorable" or "unfavorable")
Groomer Direct Labor Time Variance	$ 360.00	favorable
DL Time Variance = (AH - SH) x SR
Groomer Direct Labor Rate Variance	$ 90.00	favorable
DL Rate Variance = (AR - SR) x AH
		favorable
Direct Materials Efficiency	$ 400.00
DM Quantity Variance = (AQ - SQ) x SP
Direct Materials Price Varaince	$ 1,200.00	favorable
DM Price Variance = (AP- SP) x AQ
Use the website below for further help with variances:
http://accounting-simplified.com/management/variance-analysis/material/price.html
For the variance analysis use the following data