+1 (208) 254-6996 [email protected]
  

 ****please also help with the corrections that need to be made*****

Scenario

It has now been one month since you launched your business. You are meeting with a few investors soon to share your vision for the company and to ask for more funding. You will be sharing your company’s financial health at this meeting. To do that, you need to determine and analyze your company’s performance over the last month using the data provided.

Don't use plagiarized sources. Get Your Custom Essay on
5-2 Milestone Three: Project Workbook
Just from $13/Page
Order Essay

Prompt

Use the information in the Milestone Three Actual Costs and Revenue Data Appendix Word Document to evaluate your company’s performance, and complete the remaining tabs in the Project Workbook Spreadsheet that you used for the Milestone One and Two assignments.

Specifically, you must address the following rubric criteria:

  • Statement of Cost of Goods Sold: Prepare the statement of cost of goods sold in the “COGS” tab of the workbook. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table.
  • Income Statement: Use the given revenue data to prepare the “Income Statement” tab table and calculate the net income. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table.
  • Variance Analysis: Prepare the data in the “Variances” tab to determine whether the variances are favorable or unfavorable. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table.
    • Complete the data table for the variances by entering the budgeted (standard) and actual labor and material values. Remember to use the estimates for expected sales from your Milestone Two assignment.
    • Determine the variances for direct labor and direct materials in the “Variances” tab.
    • Evaluate the significance of the variances in the “Variances” tab, and mark them as favorable or unfavorable.

Guidelines for Submission

Submit the Project Workbook with all tabs completed. This file should be completed and submitted using Microsoft Excel.

Instructions

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.
NameChoose a price range and calculate:Create a Cost of Goods Manufactured Schedule
LocationGrooming
VisionDay Care
MissionBoarding
2.2.2.
Identify the following:Calculate the break-even unitsCreate an Income Statement
Direct MaterialsGroomingRevenue will be provided end of week 4
Diret LaborDay Care
Manufacturing OverheadBoarding
Period CostsCalculate the break-even for target profits
3.Grooming3.
Day Care
Calculate the Variable & Fixed Costs for:BoardingCalculate for the Grooming line:
GroomingDirect Labor Time Variance
Day CareDirect Labor Rate Variance
BoardingDirect Materials Efficiency Variance
Direct Materials Price Variance

ACC202 – MANAGERIAL ACCOUNTING

Company Profile/xl/drawings/drawing1.xml#CompanyProfile

Variable & Fixed Costs/xl/drawings/drawing1.xml#VariableFixedCosts

Cost Classification/xl/drawings/drawing1.xml#CostClassification

Contribution Margin/xl/drawings/drawing1.xml#ContributionMargin

Break-Even Analysis/xl/drawings/drawing1.xml#BreakevenAnalysis

COGM Schedule/xl/drawings/drawing1.xml#COGMSchedule

Income Statement/xl/drawings/drawing1.xml#COGMSchedule

Variances/xl/drawings/drawing1.xml#Variances

Instructions Milestone 1/xl/drawings/drawing1.xml#InstructionsMilestone1

Instructions Milestone 2/xl/drawings/drawing1.xml#’Instructions%20-%20Milestone%202′!InstructionsMilestone2

Instructions Milestone 3/xl/drawings/drawing1.xml#’Instructions%20-%20Milestone%203′!InstructionsMilestone3

Instructions – 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#Home

Cost 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/CostDirect MaterialDirect LaborOverheadPeriod CostsFixedVariable
Salary – Collar makerxx
Salary – Leash makerxx
Salary – Harness makerxx
Salary – Receptionistx
High-tensile strength nylon webbingxx
Polyester/nylon ribbonsxx
Buckles made of cast hardwarexx
Depreciation on sewing machinesxx
Rentxx
Utilities and insurancexx
Scissors, thread, and cordingxx
Price tagsxx
Office suppliesxx
Oter business equipmentxx
Loan paymentxx
Salary to selfxx

&8ACC202 – MANAGERIAL ACCOUNTING

HOME/xl/drawings/drawing3.xml#Home

Variable and Fixed Costs

Milestone One – Variable and Fixed Costs
Collars
ItemVariable Cost/ItemItemFixed Costs
High-tensile strength nylon webbing$ 4.00Collar maker’s salary (monthly)$ 2,773.33
Polyester/nylon ribbons$ 3.00Depreciation on sewing machines$ 55.00
Buckles made of cast hardware$ 2.00Rent$ 250.00
Price tags$ 0.10Utilities and insurance$ 200.00
Scissors, thread, and cording$ 400.00
Loan payment$ 183.33
Salary to self$ 166.67
Total Variable Costs per Collar$ 9.10Total Fixed Costs$ 4,028.33
Leashes
ItemVariable Cost/ItemItemFixed Costs
High-tensile strength nylon webbing$ 6.00Leash maker’s salary (monthly)$ 2,773.33
Polyester/nylon ribbons$ 4.50Depreciation on sewing machines$ 55.00
Buckles made of cast hardware$ 1.50Rent$ 250.00
Price tags$ 0.10Utilities and insurance$ 200.00
Scissors, thread, and cording$ 400.00
Loan payment$ 183.33
Salary to self$ 166.67
Total Variable Costs per Leash$ 12.10Total Fixed Costs$ 4,028.33
Harnesses
ItemVariable Cost/ItemItemFixed Costs
High-tensile strength nylon webbing$ 6.00Harness maker’s salary$ 2,946.67
Polyester/nylon ribbons$ 4.50Depreciation on sewing machines$ 55.00
Buckles made of cast hardware$ 4.00Rent$ 250.00
Price tags$ 0.10Utilities and insurance$ 200.00
Scissors, thread, and cording$ 400.00
Loan$ 183.33
Salary to self$ 166.67
Total Variable Costs per Harness$ 14.60Total Fixed Costs$ 4,201.67

&8ACC202 – MANAGERIAL ACCOUNTING

HOME/xl/drawings/drawing4.xml#Home

HOME/xl/drawings/drawing4.xml#Home

Instructions – 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/drawing5.xml#Home

Contribution Margin Analysis

Milestone Two – Contribution Margin Analysis
COLLARSLEASHESHARNESSES
Sales Price per Unit$ 20.00$ 22.00$ 25.00
Variable Cost per Unit9.1012.1014.60
Contribution Margin$ 10.90$ 9.90$ 10.40

&8ACC202 – MANAGERIAL ACCOUNTING

HOME/xl/drawings/drawing6.xml#Home

Break-Even Analysis

Milestone Two – Break-Even Analysis
COLLARSLEASHESHARNESSES
Sales Price$ 20.00$ 22.00$ 25.00
Fixed Costs$ 4,028$ 3,862$ 4,202The fixed cost amount for leashes should be the same as the total fixed costs for leashes on the Variable and Fixed Costs tab
Contribution Margin$ 10.90$ 9.90$ 10.40
Break-Even Units (round up)369.57390.07404.01For Break-Even calculation, all of the numbers need to be rounded up where there is any partial unit left over. For example, if only 213 units were sold, the company would be short on meeting its costs. Selling 214 units allows the company to meet all of the fixed and variable costs.
Target Profit$ 300.00$ 400.00$ 500.00
Break-Even Units (round up)397.09430.47452.08Target profit units would need to be rounded up to the next whole unit, since a partial product cannot be sold.
Target Profit$ 500.00$ 600.00$ 650.00
Break-Even Units (round up)415.44450.67466.51Target profit units also need to be rounded up to the next whole unit, since a partial product cannot be sold.

&8ACC202 – MANAGERIAL ACCOUNTING

HOME/xl/drawings/drawing7.xml#Home

Instructions – 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#Home

COGS

Milestone Three – Statement of Cost of Goods Sold
Beginning Work in Process Inventory0
Direct Materials:
Materials: Beginning0
Add: Purchases for month of January
Materials available for use
Deduct: Ending materials– 0
Materials Used
Direct Labor
Overhead
Total Costs
Deduct: Ending Work in Process Inventory0
Cost of Goods Sold

&8ACC202 – MANAGERIAL ACCOUNTING

HOME/xl/drawings/drawing9.xml#Home

Income Statement

Milestone Three – Income Statement
Revenue:
Collars$ – 0
Leashes– 0
Harnesses– 0
Total Revenue:$ – 0
Cost of goods sold– 0
Gross profit$ – 0
Expenses:
General and administrative salaries$ – 0
Depreciation– 0
Rent– 0
Utilities and insurance– 0
Scissors, thread, and cording
Loan– 0
Total Expenses$ – 0
Net Income/Loss$ – 0

&8ACC202 – MANAGERIAL ACCOUNTING

Variances

Milestone Three – Variance Analysis
Data for Variance Analysis:
Budgeted (Standard) Hours/QtyBudgeted (Standard) RateActual Hours/QtyActual Rate
Labor
Materials
Variances for Collar Sales
VarianceFavorable/ Unfavorable
Direct Labor Time Variance
(Actual Hours – Standard Hours) x Standard Rate$ – 0
Direct Labor Rate Variance
(Actual Rate – Standard Rate) x Actual Hours$ – 0
Direct Materials Quantity/Efficiency Variance
(Actual Quantity – Standard Quantity) x Standard Price$ – 0
Direct Materials Price Variance
(Actual Price – Standard Price) x Actual Quantity$ – 0

&8ACC202 – MANAGERIAL ACCOUNTING

SNHU logo

ACC 202 Milestone Three: Actual Costs and Revenue Data Appendix

At the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same.

For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month:

Materials purchased: $20,000

Consumed 80% of the purchased materials

Direct labor: $8,493.33

Overhead costs: $3,765

Note: Assume that the beginning materials and ending work in process are zero for the month.

Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation. For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 33 x 20 = 660 per month.

Established Sales PriceNumber of Items Sold per Day
Collars
$2033
$2428
$2823
Leashes
$2228
$2623
$3018
Harnesses
$2525
$3022
$3520

The other costs incurred by the business include:

General and administrative salaries

Receptionist: $1,950

Owner salary: $500

Depreciation: $165

Rent: $750

Utilities and insurance: $600

Scissors, thread, and cording: $1,200

Loan repayment: $550

Variance

At the end of the month, you find that the labor and materials spent on manufacturing collars was different from what you estimated:

The collar maker had to work nine hours a day instead of eight due to an increased demand for collars.

Because of the increased demand, the hourly rate you paid your employee for making the collars increased to $16.50.

An increase in the cost of raw material led the direct material cost per collar to increase to $10.

However, you also made and sold 60 more collars than you expected to sell in the month.

You now need to determine the variance in the materials and labor cost from what you estimated in Milestone Two based on the market research data.

1

Order your essay today and save 10% with the discount code ESSAYHELP