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ACC 202 Project Workbook
ACC 202 Project Workbook
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)
COST CLASSIFICATION
Accurately classify all of your costs (direct material, direct labor, manufacturing overhead, period costs)
Fixed & Variable cost designation is provided
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)
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)
INSTRUCTIONS:
Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs.
The Fixed and Variable cost classifications have been provided for you.
Direct Direct
Item/Cost Material Labor Overhead Period Costs Fixed Variable
Collars
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing $ 4.00 Collar maker's salary (monthly) $ 2,773.33
Polyester/nylon ribbons $ 3.00 Depreciation on sewing machines $ 165.00
Buckles made of cast hardware $ 2.00 Rent $ 250.00
Price tags $ 0.10 Utilities and insurance $ 200.00
Scissors, thread, and cording $ 400.00
Loan payment $ 183.33
Salary to self $ 166.67
Total Variable Costs per Collar $ 9.10 Total Fixed Costs $ 4,138.33
Leashes
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing $ 6.00 Leash maker's salary (monthly) $ 2,773.33
Polyester/nylon ribbons $ 4.50 Depreciation on sewing machines $ 165.00
Buckles made of cast hardware $ 1.50 Rent $ 250.00
Price tags $ 0.10 Utilities and insurance $ 200.00
Scissors, thread, and cording $ 400.00
Loan payment $ 183.33
Salary to self $ 166.67
Total Variable Costs per Leash $ 12.10 Total Fixed Costs $ 4,138.33
Harnesses
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon webbing $ 6.00 Harness maker's salary $ 2,946.67
Polyester/nylon ribbons $ 4.50 Depreciation on sewing machines $ 165.00
Buckles made of cast hardware $ 4.00 Rent $ 250.00
Price tags $ 0.10 Utilities and insurance $ 200.00
Scissors, thread, and cording $ 400.00
Loan $ 183.33
Salary to self $ 166.67
Total Variable Costs per Harness $ 14.60 Total Fixed Costs $ 4,311.67
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)
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
Fixed Costs $ - $ - $ -
Contribution Margin $ - $ - $ -
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)
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
Revenue:
Collars $ -
Leashes -
Harnesses -
Total Revenue: $ -
Cost of goods sold -
Gross profit $ -
Expenses:
General and administrative salaries $ -
Office supplies -
Other business equipment -
Total Expenses $ -
Net Income/Loss $ -
Labor
Materials