ACC 202 Final Project Workbook PDF

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Completed Excel workbook for ACC-202, Managerial Accounting....

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Southern New Hampshire University College of Continuing Education (COCE) ACC202 - Managerial Accounting

MILESTONE 1 (Due in Module 2)

MILESTONE 2 (Due in Module 4)

Instructions Milestone 1 1.

Company Profile

Instructions Milestone 2 1.

Name Location Vision Mission 2.

Cost Classification Identify 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 Schedule

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 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 COMPANY PROFILE TAB Determine a company name. Be creative (e.g. "Inspiring Dog Care") Pick a location (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 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, boardin

ACC202 - MANAGERIAL ACCOUNTING

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)

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

MILESTONE 1 - Company Profile Compnay Name

Pup Tent

Location

Atlanta, Georigia

Vision

A fun, safe place for your dog to be cared for and socialize

Mission

To provide excellent dog grooming services for any breed, and a safe environment for dogs to play, relax and become well-socialized while their owners a away at work and vacation.

ACC202 - MANAGERIAL ACCOUNTING

Pup Tent MILESTONE 1 - Cost Classification Exercise

INSTRUCTIONS: Putting 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 classifications have been provided for you. For more information see Objective 1 in Chapter 5.

Item/Cost

Direct Material

Direct Labor

Groomer

x

Day care attendant

x

Period Costs

Fixed

x x

x

Kennel attendant

Variable

x x

Receptionist

Food and water bowls

Overhead

x

x

x

Depreciation on kennels

x

x

Rent

x

x

Utilties and insurance

x

x x

Grooming tub 48"

x

Depreciation on heating system

x

Clippers

x

x

Shampoo (Crystal Clear: five-gallon pail)

x

x

Towels

x

x

Scissors (7-inch straight, ear & nose)

x

x

Toys (used in day care only)

x

x

Cleaning products (used throughout)

x

x x

Dryer

ACC202 - MANAGERIAL ACCOUNTING

Pup Tent 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 Shampoo Clipper(s) Bowls Towels Scissors

Total Variable Costs

Variable Costs $

1.04 1.37 0.72 5.83 1.01

$

9.97

Item Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs

Fixed Costs $

2,080.00 30.95 20.00 28.57 3.95 2.08 2.36 200.00

$

2,367.91

Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attend DAY CARE Item Day care attendant Toys Bowls Towels

Total Variable Costs

Variable Costs $

2.88 0.27 0.10 1.40

$

4.65

Item Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs

Fixed Costs $

232.14 150.00 $214.29 29.64 15.59 16.78 200.00

$

858.44

Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Item Kennel attendant Bowls Towels

Total Variable Costs

Variable Costs $

5.62 0.86 0.87

$

7.35

Item Depreciation on kennels Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs

ACC202 - MANAGERIAL ACCOUNTING

Fixed Costs $

80.00 386.90 250.00 357.14 49.40 25.98 29.55 200.00

$

1,378.97

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

Pup Tent MILESTONE 2 - Contribution Margin per Unit & Contribution Margin Ratio

INSTRUCTIONS: Select a price from the scenarios below and compute the contribution 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

$

25.00 7.35

$

25.00 9.97

Contribution Margin

$

13.35

$

17.65

$

15.03

ACC202 - MANAGERIAL ACCOUNTING

Pup Tent MILESTONE 2 - Break-Even Analysis

INSTRUCTIONS: Show all steps and calculations to determine the break-even. Determine the break-even for the target profit levels as outlined in the instructions.

Break-even = Fixed Costs / Contribution Margin

DAY CARE

BOARDING

GROOMING

Sales Price

$

18.00

$

25.00

$

25.00

Fixed Costs

$

858.44

$

1,378.97

$

2,367.91

Contribution Margin

$

13.35

$

17.65

$

15.03

Break-even Units (round up)

Target Profit

65

$

Break-even Units (round up)

Target Profit Break-even Units (round up)

417.00

79

$

96

$

667.00

583.00

158

$

112

$

115

ACC202 - MANAGERIAL ACCOUNTING

909.00 130

1,000.00 225

$

1,500.00 258

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

Pup Tent 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

Pup Tent Statement of Cost of Services For the Month Ended January 31, 2020

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

0

$

Materials Available for Use Deduct: Ending Materials Materials Used

0 5,000 5,000 3,000 $

Direct Labor Overhead

2,000 6,240 2,800

Total Service Costs

$

Deduct: Ending Work in Process Inventory Cost of Services

3000 $

ACC202 - MANAGERIAL ACCOUNTING

9,040

6,040

Pup Tent 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) Additional Information necessary to complete the Income Statement: General & Administrative Salaries paid = $1,200 Advertising = $100 Cleaning Products = $120 Depreciation = $83 Rent = $650 Loan = $420 Utilities & Insurance = $600

Pup Tent Income Statement For the Month Ended January 31, 2020

Revenue: Grooming Day Care Boarding

$

3,000 11,880 9,000

Total Revenue Cost of Services * Gross Profit

$ $

23,880 6,040 17,840

Total Expenses

$

3,173

Net Income / Loss

$

14,667

Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities and Insurance

$

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

ACC202 - MANAGERIAL ACCOUNTING

1,200 100 120 83 650 420 600

Pup Tent MILESTONE 3 - Variance Analysis

INSTRUCTIONS: Prepare the variances and identify whether they are favorable or unfavorable. The below website will provide further assistance with variances: http://accounting-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 Groomer Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate

Favorable/ Unfavorable

$

360.00

Unfavorable

$

(90.00)

Favorable

Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price

$

400.00

Unfavorable

Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity

$

1,200.00

Unfavorable

Groomer Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours

ACC202 - MANAGERIAL ACCOUNTING...