ACC 202 SNHU Company Profile Cost Classification & Variable & Fixed Costs Milestone 1

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yfunec1954

Business Finance

ACC 202

Southern New Hampshire University

ACC

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attached below is everything needed to work on this question In this first milestone of your final project, you will submit your cost classification tabs in your workbook. Correctly classifying your costs is essential for successfully completing the next steps in your project, so be sure to carefully and thoroughly follow the instructions

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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 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 XYZ Corporation Location Vision Mission ACC202 - MANAGERIAL ACCOUNTING HOME XYZ Corporation 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 Overhead Period Costs Fixed x Groomer x Day care attendant x Receptionist x Kennel attendant x x Food and water bowls x Depreciation on kennels x x Rent x Utilties and insurance x x Grooming tub 48" x Depreciation on heating system Clippers Variable x x x Shampoo (Crystal Clear: five-gallon pail) Towels x x Scissors (7-inch straight, ear & nose) x x Toys (used in day care only) x Cleaning products (used throughout) x Dryer x ACC202 - MANAGERIAL ACCOUNTING HOME XYZ Corporation 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 $ 1.37 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 $ 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 Variable Costs $ 2.88 0.27 0.10 1.40 Total Variable Costs 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 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 $ 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 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 XYZ Corporation 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 XYZ Corporation 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 XYZ Corporation 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 XYZ Corporation 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 XYZ Corporation 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 XYZ Corporation 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 XYZ Corporation 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 ACC 202 Milestone One Guidelines and Rubric Overview: In the first milestone of your final project, you will determine and classify the costs necessary for opening your business. This is a critical step that must be done correctly for you to successfully complete the subsequent milestones and the final submission. 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 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 Prompt: Complete the first three tabs, addressing the following critical elements:    Determine the unique characteristics of your company in the “Company Profile” tab of your workbook. Accurately classify all of your costs in the “Cost Classification” tab of your workbook. Determine your per-unit cost per dog in the “Variable_Fixed” tab of your workbook. (Most costs are filled in for you. Only compute the missing costs.) Rubric Guidelines for Submission: You must complete the first three tabs in your workbook, following the format in the provided template within each sheet. Critical Elements Characteristics of Your Company Classify All of Your Costs Per-Unit Cost Proficient (100%) Outlines the company’s profile, including its name, location, and mission and vision Classifies all costs in the “Cost Classification” tab of the workbook Determines the per-unit cost per dog in the “Variable_Fixed” tab of the workbook Not Evident (0%) Does not outline the company’s profile Does not classify costs in the “Cost Classification” tab of the workbook Does not determine the per-unit cost per dog in the “Variable_Fixed” tab of the workbook Total Value 10 45 45 100%
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Explanation & Answer

Milestone1 completed below. If you need help with milestone 2 and 3

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
Mod...


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I was struggling with this subject, and this helped me a ton!

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