You plan to open a business manufacturing collars, leashes, and harnesses for pets. To begin, you will manufacture these in a standard style and size with plans to expand your range over the year. In a few weeks, you will present your company’s financial strategy to some key investors. To begin creating your strategy, you need to consider and record all the costs associated with operating your business. You have decided to use the job order costing system.

Prompt

Use the given operational costs in the Milestone One Operational Costs Data Appendix Word Document  to complete the first two tabs, “Cost Classification” and “Variable and Fixed Costs,” in the Project Workbook Spreadsheet.

Business & Finance / Accounting

 

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/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#Home

Variable 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
Polyester/nylon ribbons Depreciation on sewing machines
Buckles made of cast hardware Rent
Price tags Utilities and insurance
Scissors, thread, and cording
Loan payment $ 183.33
Salary to self $ 166.67
Total Variable Costs per Collar Total Fixed Costs
Leashes
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing Leash maker’s salary (monthly)
Polyester/nylon ribbons Depreciation on sewing machines
Buckles made of cast hardware Rent
Price tags Utilities and insurance
Scissors, thread, and cording
Loan payment
Salary to self
Total Variable Costs per Leash Total Fixed Costs $ – 0
Harnesses
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing Harness maker’s salary
Polyester/nylon ribbons Depreciation on sewing machines
Buckles made of cast hardware Rent
Price tags Utilities and insurance
Scissors, thread, and cording
Loan
Salary to self
Total Variable Costs per Harness Total Fixed Costs

&8ACC202 – MANAGERIAL ACCOUNTING

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
COLLARS LEASHES HARNESSES
Sales Price per Unit
Variable Cost per Unit
Contribution Margin

&8ACC202 – MANAGERIAL ACCOUNTING

HOME

/xl/drawings/drawing6.xml#Home

Break-Even Analysis

Milestone Two – Break-Even Analysis
COLLARS LEASHES HARNESSES
Sales Price $ – 0 $ – 0 $ – 0
Fixed Costs $ – 0 $ – 0 $ – 0
Contribution Margin $ – 0 $ – 0 $ – 0
Break-Even Units (round up) – 0 – 0 – 0
Target Profit $ 300.00 $ 400.00 $ 500.00
Break-Even Units (round up) – 0 – 0 – 0
Target Profit $ 500.00 $ 600.00 $ 650.00
Break-Even Units (round up) – 0 – 0 – 0

&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 Inventory $ – 0
Direct Materials:
Materials: Beginning 0
Add: Purchases for month of January
Materials available for use
Deduct: Ending materials
Materials Used
Direct Labor
Overhead
Total Costs
Deduct: Ending Work in Process Inventory 0
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
Office supplies – 0
Other business equipment – 0
Total Expenses $ – 0
Net Income/Loss $ – 0

&8ACC202 – MANAGERIAL ACCOUNTING

Variances

Milestone Three – Variance Analysis
Data for Variance Analysis:
Budgeted (Standard) Hours/Qty Budgeted (Standard) Rate Actual Hours/Qty Actual Rate
Labor
Materials
Variances for Collar Sales
Variance Favorable/ 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 One: Operational Costs Data Appendix

You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning, you have estimates for the various operating costs for your business.

The total square footage for the sewing rooms is 1,500 square feet broken into three areas (500 square feet each). You have taken out a loan for start-up costs, and the monthly payment is $550; it goes into effect immediately and should be accounted for in your costs. You will also collect a modest salary for the first year of $500 per month; remember to divide evenly among the services.

Salary and Hiring Data

One collar maker, who will be paid $16.00 per hour and work 40 hours per week

One leash maker, who will be paid $16.00 per hour and work 40 hours per week

One harness maker, who will be paid $17.00 per hour and work 40 hours per week

One receptionist, who will be paid $15.00 per hour and work 30 hours per week

Other Costs

Rent: $750 per month; allocate based on square footage

High-tensile strength nylon webbing—$12 per yard of webbing

3 collars per yard of webbing

2 leashes per yard of webbing

2 harnesses per yard of webbing

Polyester/nylon ribbons—$9 per yard of ribbon

3 collars per yard of ribbon

2 leashes per yard of ribbon

2 harnesses per yard of ribbon

Buckles made of cast hardware—$0.50 per buckle

4 buckles used per collar

3 buckles used per leash

8 buckles used per harness

3 industrial sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5-year life, zero salvage value)

Utilities and insurance: $600 per month; allocate based on square footage

Scissors, thread, cording: $1,200

Price tags: $250 for 2,500 ($0.10 each)

Office supplies: $2,400 or $200 per month

Other business equipment: $2,000

Loan payment of $550 per month

Salary drawn of $500 per month

1



Who We Are

We are a professional custom writing website. If you have searched a question
and bumped into our website just know you are in the right place to get help in your coursework.

Do you handle any type of coursework?

Yes. We have posted over our previous orders to display our experience. Since
we have done this question before, we can also do it for you. To make sure we do
it perfectly, please fill our Order Form. Filling the order form correctly will assist
our team in referencing, specifications and future communication.

Is it hard to Place an Order?

1. Click on the “Place order tab at the top menu or “Order Now” icon at the
bottom and a new page will appear with an order form to be filled.

2. Fill in your paper’s requirements in the “PAPER INFORMATION” section
and click “PRICE CALCULATION” at the bottom to calculate your order
price.

3. Fill in your paper’s academic level, deadline and the required number of
pages from the drop-down menus.

4. Click “FINAL STEP” to enter your registration details and get an account
with us for record keeping and then, click on “PROCEED TO CHECKOUT
at the bottom of the page.

5. From there, the payment sections will show, follow the guided payment
process and your order will be available for our writing team to work on it.

Leave a Reply

Your email address will not be published. Required fields are marked *