ACC 202 Final Project Workbook-3 Milestone 3 PDF

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Download ACC 202 Final Project Workbook-3 Milestone 3 PDF

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This document was exported from Numbers. Each table was converted to an Excel worksheet. All other objects on each Numbers sheet were placed on separate worksheets. Please be aware that formula calcula>ons may differ in Excel.

Numbers Sheet Name

Numbers Table Name

Excel Worksheet Name

Table 1

Instruc>ons

Table 1

Instruc>ons - Milestone 1

Table 1

Company Profile

Table 1

Cost Classifica>on

Table 1

Variable_Fixed

Table 1

Instruc>ons - Milestone 2

Table 1

Contribu>on Margin Analysis

Table 1

Break-Even Analysis

Table 1

Instruc>ons - Milestone 3

Table 1

COS Schedule

Table 1

Income Statement

Table 1

Variances

Instruc>ons Instruc>ons - Milestone 1 Company Profile Cost Classifica>on Variable_Fixed Instruc>ons - Milestone 2 Contribu>on Margin Analysis Break-Even Analysis Instruc>ons - Milestone 3 COS Schedule Income Statement Variances

Southern New Hampshire University College of Con9nuing Educa9on (COCE) ACC202 - Managerial Accoun9ng

MILESTONE 1 (Due in Module 2)

MILESTONE 2 (Due in Module 4)

Instructions Milestone 1

1.

Company Profile

Instructions Milestone 2

1.

Name Loca>on Vision Mission 2.

Cost Classification Iden>fy the following: Direct Materials Diret Labor Manufacturing Overhead Period Costs

3.

Variable & Fixed Costs Calculate the Variable & Fixed Costs for: Grooming Day Care Boarding

MILESTONE 3 (Due in Module 5)

Contribution Margin

Instructions Milestone 3

1.

Choose a price range and calculate: Grooming Day Care Boarding 2.

Break-Even Analysis

Create a Cost of Goods Manufactured Schedu

2.

Calculate the break-even units Grooming Day Care Boarding Calculate the break-even for target profits Grooming Day Care Boarding

ACC202 - MANAGERIAL ACCOUNTING

COGM Schedule

Income Statement Create an Income Statement Revenue will be provided end of week 4

3.

Variances Calculate for the Grooming line: Direct Labor Time Variance Direct Labor Rate Variance Direct Materials Efficiency Variance Direct Materials Price Variance

Southern New Hampshire University College of Con9nuing Educa9on (COCE) ACC202 - Managerial Accoun9ng

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 presenta>on 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 crea>ve (e.g. "Inspiring Dog Care") Pick a loca>on (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 designa>on 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 calcula9ons 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 F ili9

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 Installa>on - $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; Deprecia>on is $80 per month General: Food & Water bowls - $3.59 per unit Day Care - two bowls last for every 75 dogs that agend 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 >mes 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 Hea>ng System - $10,000; Deprecia>on is $83 per month; Allocate based on square footage Rent - $650 per month; Allocate based on square footage U>li>es / 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

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MILESTONE 1 - Company Profile Compnay Name

Doggone Heir

Loca9on

St. Louis, MO

Vision

Our vision is to make each and every dog feel like royalty during their 9me with us.

Mission

Customer sa9sfac9on and the happiness and well-being of your pet is our main priority. We want to exceed your expecta9ons!

ACC202 - MANAGERIAL ACCOUNTING

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Doggone Heir MILESTONE 1 - Cost Classifica9on Exercise

INSTRUCTIONS: Punng 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 classifica>ons have been provided for you. For more informa>on see Objec8ve 1 in Chapter 5.

Item/Cost

Direct Material

Direct Labor

Groomer

x

Day care agendant

x

Recep>onist

x

Period Costs

Fixed

x x x

x

x

Deprecia>on on kennels

x

x

Rent

x

x

U>l>es and insurance

x

x x

Grooming tub 48"

x

Deprecia>on on hea>ng system

Variable

x

x

Kennel agendant Food and water bowls

Overhead

x x

Clippers

x

x

Shampoo (Crystal Clear: five-gallon pail) Towels

x x

x x

Scissors (7-inch straight, ear & nose)

x

x

Toys (used in day care only)

x

Cleaning products (used throughout) Dryer

x x

x x

ACC202 - MANAGERIAL ACCOUNTING

Doggone Heir 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 Clipper(s) Bowls Towels Scissors

$

1.04 1.37 0.72 5.83 1.01

Groomer Rent Loan U>li>es and Insurance Deprecia>on on hea>ng system Cleaning Products: Odoban Cleaning Products: Simple Green Draw

$

2,080.00 30.95 20.00 28.57 3.95 2.08 2.36 200.00

Total Variable Costs

$

9.97

Total Fixed Costs

$

2,367.91

Based on 22 dogs per day for six days a week. Assume 25 opera>ng days for kennel and 22 eight-hour work days for kennel agendant. DAY CARE Item

Variable Costs

Item

Fixed Costs

Day care agendant Toys Bowls Towels

$

2.88 0.27 0.10 1.40

Rent Loan U>li>es and Insurance Deprecia>on on hea>ng system Cleaning Products: Odoban Cleaning Products: Simple Green Draw

$

232.14 150.00 214.29 29.64 15.59 16.78 200.00

Total Variable Costs

$

4.65

Total Fixed Costs

$

858.44

Based on 12 dogs per day. Assume 22 eight-hour work days for kennel agendant. BOARDING Item

Variable Costs

Item

Fixed Costs

Kennel agendant Bowls Towels

$

5.62 0.86 0.87

Deprecia>on on kennels Rent Loan U>li>es and Insurance Deprecia>on on hea>ng system Cleaning Products: Odoban Cleaning Products: Simple Green Draw

$

80.00 386.90 250.00 357.14 49.40 25.98 29.55 200.00

Total Variable Costs

$

7.35

Total Fixed Costs

$

1,378.97

Southern New Hampshire University College of Con9nuing Educa9on (COCE) ACC202 - Managerial Accoun9ng

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 presenta>on 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 contribu>on 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 designa>on 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

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Doggone Heir MILESTONE 2 - Contribu9on Margin per Unit & Contribu9on Margin Ra9o

INSTRUCTIONS: Select a price from the scenarios below and compute the contribu>on 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 Variable Cost per Unit

$

18.00 4.65

$

28.00 7.35

$

30.00 9.97

Contribu>on Margin

$

13.35

$

20.65

$

20.03

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Doggone Heir MILESTONE 2 - Break-Even Analysis

INSTRUCTIONS: Show all steps and calcula>ons to determine the break-even. Determine the break-even for the target profit levels as outlined in the instruc>ons.

Break-even = Fixed Costs / Contribu>on Margin

DAY CARE

BOARDING

GROOMING

Sales Price

$

18.00

$

28.00

$

30.00

Fixed Costs

$

858

$

1,379

$

2,368

Contribu>on Margin

$

13.35

$

20.65

$

20.03

Break-even Units (round up)

Target Profit

64.00

$

Break-even Units (round up)

Target Profit Break-even Units (round up)

417.00

68.00

$

96.00

$

667.00 114.00

583.00

118.00

$

95.00

$

909.00 111.00

1,000.00 168.00

$

1,500.00 193.00

Southern New Hampshire University College of Con9nuing Educa9on (COCE) ACC202 - Managerial Accoun9ng

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 presenta>on 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

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Doggone Heir 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

Doggone Heir Statement of Cost of Services For the Month Ended January 31, xxxx

Beginning Work in Process Inventory Direct Materials: Materials - Beginning Add: Purchases for month of January

0

$

Materials Available for Use Deduct: Ending Materials

0 5,000 5,000 (3,000)

Materials Used

$

Direct Labor Overhead

2,000 6,240 2,800

Total Service Costs

$

Deduct: Ending Work in Process Inventory

11,040 0

Cost of Services

$

* Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain.

ACC202 - MANAGERIAL ACCOUNTING

11,040

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Doggone Heir 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) Addi9onal Informa9on necessary to complete the Income Statement: General & Administra>ve Salaries paid = $1,200 Adver>sing = $100 Cleaning Products = $120 Deprecia>on = $83 Rent = $650 Loan = $420 U>li>es & Insurance = $600

Doggone Heir Income Statement For the Month Ended January 31, xxxx

Revenue: Grooming Day Care Boarding

$

-

Tota Revenue Cost of Services * Gross Profit

$ $

11,040 (11,040)

Total Expenses

$

3,173

Net Income / Loss

$

(14,213)

Expenses: G&A Salaries Adver>sing Cleaning Products Deprecia>on Rent Loan U>li>es and Insurance

$

1,200 100 120 83 650 420 600

* Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain.

ACC202 - MANAGERIAL ACCOUNTING

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Doggone Heir MILESTONE 3 - Variance Analysis

INSTRUCTIONS: Prepare the variances and iden>fy whether they are favorable or unfavorable. The below website will provide further assistance with variances: hgp://accoun>ng-simplified.com/management/variance-analysis/material/price.html DATA FOR VARIANCE ANALYSIS: Standard Hours / Qty Grooming Labor Grooming Materials

Standard Rate

Actual Hours / Qty

Actual Rate

150

$

12.00

180

$

11.50

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 Quan9ty/Efficiency Variance (Actual Quan>ty - Standard Quan>ty) x Standard Price

$

400.00 Unfavorable

Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quan>ty

$

1,200.00 Unfavorable...