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
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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
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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
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MILESTONE 1 - Company Profile
Compnay Name
XYZ Corporation
Location
Vision
Mission
ACC202 - MANAGERIAL ACCOUNTING
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XYZ Corporation
MILESTONE 1 - Cost Classification Exercise
INSTRUCTIONS:
Classify each item or cost as: Direct Material, Direct Labor, Manufacturing Overhead or Period Costs.
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
Manufacturing
Overhead
Period Costs
Groomer
Day care attendant
Receptionist
Kennel attendant
Food and water bowls
Fencing for day care area
Installation of fencing
Dog grooming arm (attaches to table)
12 kennels cost
Depreciation on kennels
Rent
Utilties and insurance
Grooming table
Grooming tub 48"
Heating system
Depreciation on heating system
Clippers
Shampoo (Crystal Clear: five-gallon pail)
Cage bank (set of five)
Salon Tuff Capri mobile carry cart
Towels
Scissors (7-inch straight, ear & nose)
Toys (used in day care only)
Cleaning products (used throughout)
Dryer
Rubberized flooring (day care)
Loan
Draw
Fixed
Variable
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
ACC202 - MANAGERIAL ACCOUNTING
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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
$
2,367.92
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
0.19
1.40
$
-
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
17.73
200.00
$
859.39
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
$
7.36
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
$
1,378.99
Southern New Hampshire University
College of Continuing Education (COCE)
ACC202 - Managerial Accounting
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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
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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
Variable Cost per Unit
$
-
$
-
$
-
Contribution Margin
$
-
$
-
$
-
ACC202 - MANAGERIAL ACCOUNTING
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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.
Round all decimals UP to next whole number.
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
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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
Data needed for the Income Statement will be shared in an Announcement at the end of Module Four
COST OF GOODS MANUFACTURED (COGM) 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 COGM Schedule
VARIANCES
Use the data at the top of the schedule to calculate the following:
Variance
Favorable / Unfavorable
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XYZ Corporation
MILESTONE 3 - Statement of Cost of Goods Manufactured
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
Factory Overhead
Factory Overhead was $2,800
XYZ Corporation
Statement of Cost of Goods Manufactured
For the Month Ended January 31, xxxx
Beginning Work in Process Inventory
Direct Materials:
Materials - Beginning
Add: Purchases for month of January
Materials Available for Use
Deduct: Ending Materials
Materials Used in Production
$
-
$
-
$
-
$
-
Direct Labor
Factory Overhead
Total Manufacturing Overhead
$
Deduct: Ending Work in Process Inventory
Cost of Goods Manufactured
-
$
ACC202 - MANAGERIAL ACCOUNTING
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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 Goods Sold *
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 Goods Manufactured (COGM).
There is no finished goods inventory to maintain.
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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 Time Variance
(Actual Rate - Standard Rate) x Actual Hours
$
-
Groomer Direct Labor Time Variance
(Actual Quantity - Standard Quantity) x Standard Price
$
-
Groomer Direct Labor Time Variance
(Actual Price - Standard Price) x Actual Quantity
$
-
ACC202 - MANAGERIAL ACCOUNTING
Overview: In the second milestone of your final project, you will complete your pre-opening strategy. You must analyze the cost behaviors and systems of your
industry and then conduct the relevant financial calculations to determine appropriate costing solutions. Be sure to use your work from Milestone One to inform
your analysis and proposals.
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.
c
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:
O
Day Care
Break-even
o $417 target profit each month
$667 target profit each month
o
.
O
Boarding
Break-even
o $583 target profit each month
o $909 target profit each month
O
Grooming
Break-even
o $1,000 target profit each month
o $1,500 target profit each month
Prompt: Continue your work in your provided workbook by conducting a cost-volume profit analysis, specifically addressing the following critical elements:
Determine your contribution margin per unit and contribution margin ratio in the "Contribution Margin Analysis” tab.
Determine your break-even points for achieving your target profits in the "Break-Even Analysis" tab.
Incorporate all feedback from Milestone One.
Rubric
Guidelines for Submission: Your workbook submission should have the first five tabs completed according to the formats in the provided templates within each
sheet.
Value
40
40
Critical Elements
Proficient (100%)
Needs Improvement (55%)
Not Evident (0%)
Contribution Margin Determines the contribution Determines the contribution Does not determine the
margin per unit and contribution margin per unit and contribution contribution margin per unit and
margin ratio in the "Contribution margin ratio in the "Contribution contribution margin ratio in the
Margin Analysis" tab of the
Margin Analysis" tab of the "Contribution Margin Analysis"
workbook
workbook, but fails to fully or tab of the workbook
accurately complete the analysis
Break-Even Points Determines the break-even Determines the break-even Does not determine the break-
points for achieving the target points for achieving the target even points for achieving the
profits in the "Break-Even profits in the "Break-Even target profits in the "Break-Even
Analysis" tab of the workbook Analysis" tab of the workbook, Analysis" tab of the workbook
but fails to fully or accurately
complete the analysis
Incorporate All Incorporates feedback from
Fails to incorporate all feedback
Feedback Milestone One into the first
from Milestone One into the first
three tabs of the workbook
three tabs of the workbook
Total
20
100%
ACC 202 Milestone Three Guidelines and Rubric
Overview: In the third milestone, you will jump forward in time: Imagine that your business has already opened. Use the updated scenario information to
analyze your company's performance.
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-of-
goods-manufactured statement can be found in the "COGM Schedule" tab of your workbook.
For your variance analysis, use the following financial data:
Grooming labor
Standard Hours
Standard Rate
Actual Hours
Actual Rate
150
$12
180
$11.50
Grooming Materials
Standard Quantity
Standard Price
Actual Quantity
Actual Price
1000
$2
1200
$3
Prompt: Complete your work in the provided workbook by assessing your company's financial performance, specifically addressing the following critical
elements:
Financial Statements
Create a statement of cost of goods manufactured in the "COGM Schedule" tab.
Create an income statement in the "Income Statement" tab.
0
Variance Analysis
o Identify all variances for the direct labor time and the materials price in the "Variances" tab.
Evaluate the significance of the variances in the "Variances” tab.
o
Incorporate all feedback from previous milestones to finalize your workbook
Guidelines for Submission: You must submit a complete workbook, following the formats in the provided templates within each sheet.
Value
25
25
Critical Elements
Proficient (100%)
Needs Improvement (55%)
Not Evident (0%)
Statement of Cost of Creates the statement of cost of Creates the statement of cost of Does not create the statement of
Goods Manufactured goods manufactured using the goods manufactured, but does cost of goods manufactured
provided benchmarks
not fully or accurately complete
the task given the provided
benchmarks
Income Statement Creates the income statement Creates the income statement, Does not create the income
using the provided benchmarks but does not fully or accurately statement
complete the task given the
provided benchmarks
Identify All Variances Accurately identifies all variances Identifies variances for the direct Does not identify variances for
for the direct labor time and the labor time and the materials the direct labor time and the
materials price
price, but fails to fully or materials price
accurately identify each
Significance of the Evaluates the significance of the Indicates the significance of the Does not evaluate the
Variances variances
variances, but fails to fully or significance of the variances
accurately identify their
implications
Total
25
25
100%
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