ACC 202 Project Workbook PDF

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Final excellence document!...

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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

x

Salary - Leash maker

x

x

Salary - Harness maker

x

x x

Salary - Receptionist High-tensile strength nylon webbing

x

x

Polyester/nylon ribbons

x

x

Buckles made of cast hardware

x

x

Depreciation on sewing machines

x

x

Rent

x

x

Utilities and insurance

x

x

Scissors, thread, and cording

x

x

Price tags

x

x

Office supplies

x

Oter business equipment

x

Loan payment

x

x

Salary to self

x

x

ACC202 - MANAGERIAL ACCOUNTING

Milestone One - Variable and Fixed Costs

Collars Item High-tensile strength nylon webbing Polyester/nylon ribbons Buckles made of cast hardware Price tags

Total Variable Costs per Collar

Variable Cost/Item $ $ $ $

4.00 3.00 2.00 0.10

$

9.10

Item Collar maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self

Total Fixed Costs

Fixed Costs $ $ $ $ $ $ $

$

2,773.33 55.00 250.00 200.00 400.00 183.33 166.67

4,028.33

Leashes Item High-tensile strength nylon webbing Polyester/nylon ribbons Buckles made of cast hardware Price tags

Total Variable Costs per Leash

Variable Cost/Item $ $ $ $

6.00 4.50 1.50 0.10

$

12.10

Item Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self

Total Fixed Costs

Fixed Costs $ $ $ $ $ $ $

$

2,773.33 55.00 250.00 200.00 400.00 183.33 166.67

4,028.33

Harnesses Item

Variable Cost/Item

High-tensile strength nylon webbing Polyester/nylon ribbons Buckles made of cast hardware Price tags

$ $ $ $

6.00 4.50 4.00 0.10

Total Variable Costs per Harness

$

14.60

Item Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Salary to self

Total Fixed Costs

ACC202 - MANAGERIAL ACCOUNTING

Fixed Costs $ $ $ $ $ $ $

$

2,946.67 55.00 250.00 200.00 400.00 183.33 166.67

4,201.67

Milestone Two - Contribution Margin Analysis

COLLARS

LEASHES

HARNESSES

Sales Price per Unit Variable Cost per Unit

$

20.00 9.10

$

22.00 12.10

$

35.00 14.60

Contribution Margin

$

10.90

$

9.90

$

20.40

ACC202 - MANAGERIAL ACCOUNTING

Milestone Two - Break-Even Analysis

COLLARS

LEASHES

HARNESSES

Sales Price

$

20.00

$

22.00

$

35.00

Fixed Costs

$

4,028

$

4,028

$

4,202

Contribution Margin

$

10.90

$

9.90

$

20.40

Break-Even Units (round up)

Target Profit

370.00

$

Break-Even Units (round up)

Target Profit Break-Even Units (round up)

300.00

407.00

$

398.00

$

500.00

400.00

206.00

$

448.00

$

416.00

ACC202 - MANAGERIAL ACCOUNTING

600.00 468.00

500.00 231.00

$

650.00 238.00

Milestone Three - Statement of Cost of Goods Sold

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

0

$

Materials available for use Deduct: Ending materials

0 20,000 20,000 4,000

Materials Used

$

Direct Labor Overhead

16,000 8,493 3,765

Total Costs

$

Deduct: Ending Work in Process Inventory Cost of Goods Sold

0 $

ACC202 - MANAGERIAL ACCOUNTING

28,258

28,258.33

Milestone Three - Income Statement

Revenue: Collars Leashes Harnesses

$

13,200 12,320 14,000

Total Revenue: Cost of goods sold Gross profit

$ $

39,520 28,258 11,262

Total Expenses

$

5,715.00

Net Income/Loss

$

5,546.67

Expenses: General and administrative salaries Depreciation Rent Utilities and insurance Scissors, thread, and cording Loan

$

$

2,450 165 750 600 1,200.00 550

ACC202 - MANAGERIAL ACCOUNTING

Milestone Three - Variance Analysis

Data for Variance Analysis: Budgeted (Standard) Hours/Qty Labor

160

Materials

600

Budgeted (Standard) Rate

$

Actual Hours/Qty

Actual Rate

$16

180

$

16.50

9.10

660

$

10.00

Variances for Collar Sales Variance

Favorable/ Unfavorable

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

$

320.00

Unfavorable

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

$

90.00

Unfavorable

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

$

546.00

Unfavorable

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

$

594.00

Unfavorable

ACC202 - MANAGERIAL ACCOUNTING...