Power point managerial accounting

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  1. In a detailed PowerPoint presentation (12 to 15 slides in length, plus speaker notes and an addendum), explain and defend your costing strategies (i.e., thebusiness plan created in your first and second milestones) and share your business’s performance to-date (i.e., the work from your third milestone). Be sure to effectively communicate to your stakeholders by breaking down concepts and using investor-friendly language to build their trust and confidence.

Please see attached guidelines and rubpic for details and workbooks for module two, four and five

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ACC 202 Final Project Guidelines and Rubric Overview Successful entrepreneurs understand all aspects of business, especially costs and costing systems. Managerial accounting provides a framework for strategic analysis and planning with regard to cost behaviors and costing systems. In this final project, you have the opportunity to act as an entrepreneur and apply managerial accounting principles to evaluate and manage costs related to your products within a costing system. Additionally, you will demonstrate your ability to communicate your findings effectively to internal stakeholders, just as an actual business owner would need to do. Specifically, you will assume the role of the owner of a hypothetical small business. In your milestone work, you will develop financial strategies prior to opening your business. For the final submission, you will create a presentation for your investors after your business has been in operation for a certain period of time. You will use the provided scenarios to complete your project. The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Two, Four, and Five. The final product will be submitted in Module Seven. In this assignment, you will demonstrate your mastery of the following course outcomes:    ACC-202-01: Apply fundamental costing systems to optimize operations within a business ACC-202-02: Assess financial performance to communicate financial planning strategies to internal stakeholders ACC-202-03: Leverage fundamental managerial accounting methods to support the mission of an organization Prompt In a detailed PowerPoint presentation (12 to 15 slides in length, plus speaker notes and an addendum), explain and defend your costing strategies (i.e., the business plan created in your first and second milestones) and share your business’s performance to-date (i.e., the work from your third milestone). Be sure to effectively communicate to your stakeholders by breaking down concepts and using investor-friendly language to build their trust and confidence. Specifically, the following critical elements must be addressed. Most of the critical elements align with a particular course outcome (shown in brackets). I. Introduce your presentation A. Outline your company’s profile, including its name, location, and mission and vision. B. Explain for your investors the purpose of the presentation. What do you plan to communicate, and why should your investors pay attention? In other words, try to persuade your investors that the accounting information you are about to share is important. [ACC-202-03] C. Explain and defend your methods for generating the information that you are about to share in terms of your adherence to industry standards and the AICPA code of ethics. In other words, why should your investors trust that you are delivering accurate financial data and that your decision-making process has been ethical? [ACC-202-03] 1 D. Specifically, be sure to illustrate how your managerial accounting methods support the mission of your organization, using examples. [ACC-20203] II. Financial Strategy: Review your original business plan and costing strategies using the prior-to-opening scenario information. A. Justify your use of job order costing. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense. [ACC-202-01] B. Explain and defend the selling prices that you established for grooming, day care, and boarding. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] C. Explain and defend your selected target profits for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] D. Explain and defend your contribution margin per unit and contribution margin ratio. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] III. Financial Statements: Assess your financial performance to-date using the post-opening scenario information. A. Financial Statements 1. Share the statement of cost of services and logically interpret the business’s performance against the provided benchmarks. [ACC-20202] 2. Share the income statement and logically interpret the business’s performance against the provided benchmarks. [ACC-202-02] B. Variance Analysis 1. Identify all variances for the direct labor time and the materials price. [ACC-202-02] 2. Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning. [ACC-202-02] IV. In an addendum, submit your completed workbook, including the following: A. Accurately classify all of your costs in the “Cost Classification” tab. [ACC-202-01] B. Conduct a cost-volume profit analysis: 1. Determine your contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab. [ACC-202-01] 2. Determine your break-even points for achieving your target profits in the “Break-even analysis” tab. [ACC-202-01] Milestones Milestone One: First Part of Workbook In Module Two, you will submit the “Cost Classifications” and “Variable_Fixed” tabs in your provided final project workbook. This milestone will be graded with the Milestone One Rubric. 2 Milestone Two: Second Part of Workbook In Module Four, you will submit the “Contribution Margin Analysis” and “Break-even Analysis” tabs in your provided final project workbook. This milestone will be graded with the Milestone Two Rubric. Milestone Three: Final Workbook In Module Five, you will submit “COS Schedule,” “Income Statement,” and “Variances” tabs in your provided final project workbook. This milestone will be graded with the Milestone Three Rubric. Final Submission: Presentation to Investors In Module Seven, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final prompt. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric. Deliverables Milestone Deliverable Module Due Grading One Cost Classification Tabs Two Graded separately; Milestone One Rubric Two Financial Scope of the Business Plan Four Graded separately; Milestone Two Rubric Draft Presentation to Investors Five Graded separately; Milestone Three Rubric Seven Graded separately; Final Project Rubric Three Final Submission: Presentation to Investors Final Project Rubric Guidelines for Submission: Your PowerPoint presentation to investors must be at least 12–15 slides plus speaker notes, and all citations should follow APA formatting. In addition, submit completed Excel workbook. Critical Elements Introduce: Company’s Profile Exemplary Meets “Proficient” criteria and judiciously includes details relevant to the target audience of the presentation (100%) Proficient Outlines the company’s profile, including its name, location, and mission and vision (85%) 3 Needs Improvement Outlines the company’s profile but fails to include its name, location, and mission and vision (55%) Not Evident Does not outline the company’s profile (0%) Value 3 Introduce: Purpose [ACC-202-03] Meets “Proficient” criteria and demonstrates nuanced appreciation for the role of managerial accounting in ethically supporting the mission of an organization (100%) Meets “Proficient” criteria and demonstrates nuanced appreciation for the role of managerial accounting in ethically supporting the mission of an organization (100%) Explains the purpose of the presentation, including a persuasive case for the importance of the accounting information to be shared (85%) Explains the purpose of the presentation, but fails to fully or persuasively make a case for the importance of the accounting information (55%) Does not explain the purpose of the presentation (0%) 7 Explains and defends the methods for generating the information in the presentation in terms of their adherence to industry standards and the AICPA code of ethics (85%) Does not explain the methods for generating the information in the presentation (0%) 7 Meets “Proficient” criteria and demonstrates nuanced appreciation for the role of managerial accounting in ethically supporting the mission of an organization (100%) Meets “Proficient” criteria and demonstrates keen insight into key cost behaviors and cost systems (100%) Illustrates how the managerial accounting methods support the mission of the organization using specific examples (85%) Does not discuss illustrate how the managerial accounting methods support the mission of the organization (0%) 7 Does not discuss the use of job order costing (0%) 6 Financial Strategy: Selling Prices [ACC-202-02] Meets “Proficient” criteria and demonstrates strategic ability to propose costing solutions supported by the financial data (100%) Explains and defends the selling prices for grooming, day care, and boarding by citing financial data from the cost-volumeprofit analysis (85%) Does not explain the selling prices for grooming, day care, and boarding (0%) 8 Financial Strategy: Target Profits [ACC-202-02] Meets “Proficient” criteria and demonstrates strategic ability to propose costing solutions supported by the financial data (100%) Explains and defends the target profits for each area of the business by citing financial data from the cost-volume-profit analysis (85%) Explains the methods for generating the information in the presentation, but fails to fully defend the methods in terms of their adherence to industry standards and the AICPA code of ethics (55%) Discusses how the managerial accounting methods support the mission of the organization, but fails to fully or accurately illustrate using specific examples (55%) Discusses the use of job order costing but fails to fully or accurately justify its use by comparing and contrasting the various costing systems covered in the course (55%) Explains the selling prices for grooming, day care, and boarding, but fails to fully or accurately defend each price by citing financial data from the cost-volume-profit analysis (55%) Explains the target profits for each area of the business, but fails to fully or accurately defend each one by citing financial data from the costvolume-profit analysis (55%) Does not explain the target profits for each area of the business (0%) 8 Introduce: Defend of Methods [ACC-202-03] Introduce: Support the Mission [ACC-202-03] Financial Strategy: Costing Systems [ACC-202-01] Justifies the use of job order costing by comparing and contrasting the various costing systems covered in the course (85%) 4 Financial Strategy: Contribution Margin [ACC-202-02] Meets “Proficient” criteria and demonstrates strategic ability to propose costing solutions supported by the financial data (100%) Explains and defends the contribution margin per unit and contribution margin ratio by citing financial data from the cost-volume-profit analysis (85%) Financial Statements: Statement of Cost of Services [ACC-202-02] Meets “Proficient” criteria and demonstrates sophisticated ability to evaluate critical performance measures for strategic planning (100%) Shares the statement of cost of services and logically interprets the business’s performance against the provided benchmarks (85%) Financial Statements: Income Statement [ACC-202-02] Meets “Proficient” criteria and demonstrates sophisticated ability to evaluate critical performance measures for strategic planning (100%) Shares the income statement and logically interprets the business’ performance against the provided benchmarks (85%) Variance Analysis: Identify [ACC-202-02] Meets “Proficient” criteria and demonstrates sophisticated ability to evaluate critical performance measures for strategic planning (100%) Meets “Proficient” criteria and demonstrates sophisticated ability to evaluate critical performance measures for strategic planning (100%) Accurately identifies all variances for the direct labor time and the materials price (85%) Variance Analysis: Significance of the Variance [ACC-202-02] Addendum: Classify Costs [ACC-202-01] Evaluates the significance of the variances in terms of their potential to impact future budgeting decisions and planning (85%) Accurately classifies all costs in the “Cost Classification” tab of the workbook (100%) 5 Explains the contribution margin per unit and contribution margin ratio, but fails to fully or accurately defend each by citing financial data from the cost-volumeprofit analysis (55%) Shares the statement of cost of services, but there are inaccuracies in the statement, or the interpretation has gaps in logic or fails to address the provided benchmarks (55%) Shares the income statement, but there are inaccuracies in the statement or the interpretation has gaps in logic or fails to address the provided benchmarks (55%) Identifies variances for the direct labor time and the materials price, but fails to fully or accurately identify each (55%) Evaluates the significance of the variances, but fails to fully or accurately identify their potential to impact future budgeting decisions and planning (55%) Classifies costs in the “Cost Classification” tab, but fails to fully or accurately classify each (55%) Does not explain the contribution margin per unit and contribution margin ratio (0%) 8 Does not share the statement of cost of services (0%) 6 Does not share the income statement (0%) 6 Does not identify variances for the direct labor time and the materials price (0%) 6 Does not evaluate the significance of the variances (0%) 7 Does not classify costs in the “Cost Classification” tab of the workbook (0%) 6 Addendum: Contribution Margin [ACC-202-01] Determines the contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab of the workbook (100%) Addendum: BreakEven Points [ACC-202-01] Determines the break-even points for achieving the target profits in the “Break-even analysis” tab of the workbook (100%) Effective Business Communication [ACC-202-02] Meets “Proficient” criteria and demonstrates sophisticated ability to effectively communicate to internal stakeholders (100%) Main ideas are clearly communicated and references are properly cited throughout the presentation (85%) 6 Determines the contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab of the workbook, but fails to fully or accurately complete the analysis (55%) Determines the break-even points for achieving the target profits in the “Break-even analysis” tab of the workbook, but fails to fully or accurately complete the analysis (55%) There are minor issues with the communication of ideas or use of citations that negatively impact the effectiveness of the presentation (55%) Does not determine the contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab of the workbook (0%) 6 Does not determine the breakeven points for achieving the target profits in the “Breakeven analysis” tab of the workbook (0%) 6 There are critical errors in the communication of ideas that negatively impact basic comprehension of the presentation (0%) Total 3 100% Appendix Scenario: Prior to Opening, Part I: You plan to open a pet-services business that will offer dog grooming, day care, and boarding. You can be creative in deciding the name of your business (e.g., “Inspiring Dog Care”), its geographical location (e.g., Chicago), and its mission and vision for adding value to the community. You will be asked to make choices for a few other details to customize your case; otherwise, you should use the information below. There are 12 kennels (single dog only) and the day care area can house 10 large dogs and 12 small dogs each day. The grooming facility is 200 square feet, the boarding facility is 2,500 square feet, and the day care is 1,500 square feet. Your groomer can groom five dogs a day for five days a week; each groom consists of 1.5 labor hours. You also offer dog day care six days a week, and kenneling every day. You have taken out a loan for start-up costs and the monthly payment is $420; it goes into effect immediately and should be accounted for in your costs. With limited cash contribution and loan funding, you located two angel investors. You will collect a modest draw for the first year of $600 a month; remember to divide evenly among the services. Note: For simplicity, base all calculations using 30 days in each month. You estimate the following staffing needs:     A groomer who will be paid $12/hour and work 40 hours a week A day care attendant who will be paid $9/hour and will work 22 eight-hour days per month A receptionist who will be paid $8.50/hour and work 30 hours a week A kennel attendant who will be paid $11.50/hour and will work 22 eight-hour days per month A complete list of additional costs is provided below:         Food and water bowls: $3.59/unit o Daycare: Two bowls last for every 75 dogs that attend daycare. o Boarding: Two bowls last for every 100 dogs that are boarded; you need two bowls per kennel. o Grooming: Each bowl lasts for 20 grooms and you need four bowls at all times. Fencing for daycare area: $1,249; installation of fencing: $1,000 Dog grooming arm: $300 12 kennels: $9,500; depreciation is $80/month Rent: $650/month; allocate based on square footage Utilities/insurance: $600/month; allocate based on square footage Grooming table: $900 Grooming tub: $2800 7            Heating system: $10,000; depreciation is $83/month; allocate based on square footage Clippers: $136.99; can be used for 100 grooms Shampoo: $103.96 per five-gallon pail, which can be used for 100 grooms Cage bank: $2200 per set of 5 Salon Tuff Capri mobile carry cart: $90 Towels: $34.99 per 12 pack o Day care: You need to have 12 towels for every 25 dogs. o Boarding: You need to have 12 towels for every 40 dogs. o Grooming: You need to have two towels for every groom per day. Scissors: (1) 7-inch straight is $194.99, and (1) ear-and-nose is $7.49; each can be used for 200 grooms. Toys: $3.29 per 6-pack; one toy will last for two dogs in day care, per day. Cleaning products: o Odoban: $14.55/gallon: Each area will dilute 1 oz to 1 gallon of water; allocate based on square footage. o Simple Green: $15.66/gallon: each area will dilute 1 oz to 1 gallon of water; allocate based on square footage. Dryer: $1250 Rubberized flooring for day care: $3800 Scenario: Prior to Opening, Part II: Your market research indicated the following price ranges as optimal for your area:  Dog Day Care o With pricing at $18 per dog per day, you can expect to have 22 dogs per day. o With pricing at $20 per dog per day, you can expect to have 15 dogs per day. o With pricing at $25 per dog per day, you can expect to have 10 dogs per day.  Overnight Boarding o With pricing at $25 per dog per day, you can expect to have 12 dogs per day. o With pricing at $28 per dog per day, you can expect to have 10 dogs per day. o With pricing at $30 per dog per day, you can expect to have 7 dogs per day.  Basic Groom o With pricing at $25 per groom, you can expect to do 5 grooms per day. o With pricing at $30 per groom, you can expect to do 4 grooms per day. o With pricing at $35 per groom, you can expect to do 3 grooms per day. Additionally, you need to compare your break-even points for the following target profits for each area of your business: 8  Day Care o Break-even o $417 target profit each month o $667 target profit each month  Boarding o Break-even o $583 target profit each month o $909 target profit each month  Grooming o Break-even o $1,000 target profit each month o $1,500 target profit each month Post-opening Scenario: Your angel investors are silent in relation to the business; however, they require board meetings for status updates on the company’s financial health. Therefore, you need to analyze your company’s performance over the last month using the data provided below. Note: Your instructor will create an announcement sharing the income statement data by the end of Module Four. All of the data you need for the cost-ofgoods-manufactured statement can be found in the “COS Schedule” tab of your workbook. For your variance analysis, use the following financial data: Direct Materials/Labor Original Projection Actual Shampoo 1000 ounces ($2/groom) 1200 ounces ($3/groom) Grooming Labor 1.5 hrs/groom @ $12 2.25 hrs/groom @ $11.50 9 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 ured Schedule ACC202 - MANAGERIAL ACCOUNTING Southern New Hampshire University HOME 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, boarding) ACC202 - MANAGERIAL ACCOUNTING Southern New Hampshire University HOME 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 ACC202 - MANAGERIAL ACCOUNTING ACC202 - MANAGERIAL ACCOUNTING HOME MILESTONE 1 - Company Profile Compnay Name The Paw Pack Location Kansas Vision To enrich the bond between dogs and people Mission The Paw Pack will provide personal pet care to our clients and their people with honest, caring, and dependable service, allowing pets to feel free as they do in the comfort of their home. ACC202 - MANAGERIAL ACCOUNTING HOME The Paw Pack 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 Overhead Period Costs Fixed x x x Receptionist x x Kennel attendant Variable x Food and water bowls x Depreciation on kennels x 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) Dryer x x x ACC202 - MANAGERIAL ACCOUNTING HOME The Paw Pack 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 attendant. 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 HOME 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 The Paw Pack 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 $ - $ - $ - Contribution Margin $ - $ - $ - ACC202 - MANAGERIAL ACCOUNTING HOME The Paw Pack 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 $ - $ - $ - Fixed Costs $ - $ - $ - Contribution Margin $ - $ - $ - Break-even Units (round up) Target Profit - $ Break-even Units (round up) Target Profit Break-even Units (round up) 417.00 - $ - $ 667.00 - 583.00 - $ - $ 909.00 - ACC202 - MANAGERIAL ACCOUNTING 1,000.00 - $ 1,500.00 - Southern New Hampshire University HOME 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 The Paw Pack 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 The Paw Pack 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 0 Materials Available for Use Deduct: Ending Materials Materials Used Direct Labor Overhead Total Service Costs Deduct: Ending Work in Process Inventory Cost of Services * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. ACC202 - MANAGERIAL ACCOUNTING HOME The Paw Pack 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 The Paw Pack Income Statement For the Month Ended January 31, xxxx Revenue: Grooming Day Care Boarding $ - Tota Revenue Cost of Services * Gross Profit $ $ - Total Expenses $ - Net Income / Loss $ - 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 HOME The Paw Pack 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 Favorable/ Unfavorable Variance Groomer Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ - Groomer Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours $ - Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price $ - Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity $ - ACC202 - MANAGERIAL ACCOUNTING 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 ured Schedule ACC202 - MANAGERIAL ACCOUNTING Southern New Hampshire University HOME 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, boarding) ACC202 - MANAGERIAL ACCOUNTING Southern New Hampshire University HOME 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 ACC202 - MANAGERIAL ACCOUNTING ACC202 - MANAGERIAL ACCOUNTING HOME MILESTONE 1 - Company Profile Compnay Name The Paw Pack Location Kansas Vision To enrich the bond between dogs and people Mission The Paw Pack will provide personal pet care to our clients and their people with honest, caring, and dependable service, allowing pets to feel free as they do in the comfort of their home. ACC202 - MANAGERIAL ACCOUNTING HOME The Paw Pack 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 Overhead Period Costs Fixed x x x Receptionist x x Kennel attendant Variable x Food and water bowls x Depreciation on kennels x 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) Dryer x x x ACC202 - MANAGERIAL ACCOUNTING HOME The Paw Pack 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 attendant. 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 HOME 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 The Paw Pack 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 HOME The Paw Pack 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 $ 1,379 $ 2,368 Contribution Margin $ 13.35 $ 17.65 $ 15.03 Break-even Units (round up) Target Profit 1,157 $ Break-even Units (round up) Target Profit Break-even Units (round up) 417.00 1,953 $ 1,720 $ 667.00 2,057 583.00 3,939 $ 2,779 $ 909.00 3,241 ACC202 - MANAGERIAL ACCOUNTING 1,000.00 5,602 $ 1,500.00 6,434 Southern New Hampshire University HOME 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 The Paw Pack 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 The Paw Pack 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 9,040 0 Cost of Services $ * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. ACC202 - MANAGERIAL ACCOUNTING 11,040 HOME The Paw Pack 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 The Paw Pack Income Statement For the Month Ended January 31, xxxx Revenue: Grooming Day Care Boarding $ 125 396 300 Tota Revenue Cost of Services * Gross Profit $ $ 821 11,040 (10,219) Total Expenses $ 3,173 Net Income / Loss $ (13,392) Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities 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 HOME The Paw Pack 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 Favorable/ Unfavorable Groomer Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ 360.00 F Groomer Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours $ 345.00 F Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price $ 400.00 F Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity $ 600.00 F ACC202 - MANAGERIAL ACCOUNTING 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 ured Schedule ACC202 - MANAGERIAL ACCOUNTING Southern New Hampshire University HOME 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, boarding) ACC202 - MANAGERIAL ACCOUNTING Southern New Hampshire University HOME 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 ACC202 - MANAGERIAL ACCOUNTING ACC202 - MANAGERIAL ACCOUNTING HOME MILESTONE 1 - Company Profile Compnay Name The Paw Pack Location Kansas Vision To enrich the bond between dogs and people Mission The Paw Pack will provide personal pet care to our clients and their people with honest, caring, and dependable service, allowing pets to feel free as they do in the comfort of their home. ACC202 - MANAGERIAL ACCOUNTING HOME The Paw Pack 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 Overhead Period Costs Fixed x x x Receptionist x x Kennel attendant Variable x Food and water bowls x Depreciation on kennels x 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) Dryer x x x ACC202 - MANAGERIAL ACCOUNTING HOME The Paw Pack 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 attendant. 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 HOME 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 The Paw Pack 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 HOME The Paw Pack 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 $ 1,379 $ 2,368 Contribution Margin $ 13.35 $ 17.65 $ 15.03 Break-even Units (round up) Target Profit 1,157 $ Break-even Units (round up) Target Profit Break-even Units (round up) 417.00 1,953 $ 1,720 $ 667.00 2,057 583.00 3,939 $ 2,779 $ 909.00 3,241 ACC202 - MANAGERIAL ACCOUNTING 1,000.00 5,602 $ 1,500.00 6,434 Southern New Hampshire University HOME 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 The Paw Pack 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 The Paw Pack 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 9,040 0 Cost of Services $ * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. ACC202 - MANAGERIAL ACCOUNTING 11,040 HOME The Paw Pack 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 The Paw Pack Income Statement For the Month Ended January 31, xxxx Revenue: Grooming Day Care Boarding $ 3,000 11,880 9,000 Tota Revenue Cost of Services * Gross Profit $ $ 23,880 11,040 12,840 Total Expenses $ 3,173 Net Income / Loss $ 9,667 Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities 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 HOME The Paw Pack 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 Favorable/ Unfavorable Groomer Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ 360.00 F Groomer Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours $ 345.00 F Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price $ 400.00 F Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity $ 600.00 F ACC202 - MANAGERIAL ACCOUNTING
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Explanation & Answer

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Student’s name
Institution







Business name: The Paw Pack
Location: Kansas
Vision: To enrich the bond between dogs and human
Mission: The Paw Pack will provide personal pet care
to our clients and their people with honest, caring,
and dependable service, allowing pets to feel free as
they do in the comfort of their home.










To outline the cost strategies that the company will
undertake to achieve it’s objective.
To indicate how the company will earn returns to
investors.
To indicate break-even point.
The business plan information is important as it...


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