Description In this second milestone of your final project, you will complete the pre-opening strategy tabs in your workbook. You must analyze the cost behaviors and systems of your industry, and conduct the relevant financial calculations to determine appropriate costing solutions. Be sure to use your work from Milestone One to inform your analysis.To complete this assignment, review the prompt and grading rubric in the Milestone Two Guidelines and Rubric document. When you have finished your work, submit the assignment here for grading and instructor feedback. 3 attachmentsSlide 1 of 3attachment_1attachment_1attachment_2attachment_2attachment_3attachment_3.slider-slide > img { width: 100%; display: block; } .slider-slide > img:focus { margin: auto; } Unformatted Attachment Preview 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 Two Guidelines and Rubric 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.  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:  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 Prompt: Continue your work 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. Critical Elements Proficient (100%) Contribution Margin Determines the contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab of the workbook Does not determine the contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab of the workbook 40 Determines the break-even points for achieving the target profits in the “Break-Even Analysis” tab of the workbook Does not determine the breakeven points for achieving the target profits in the “Break-Even Analysis” tab of the workbook 40 Incorporates feedback from Milestone One into the first three tabs of the workbook Fails to incorporate all feedback from Milestone One into the first three tabs of the workbook 20 Break-Even Points Incorporate All Feedback Not Evident (0%) Value Total 100% 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 Groomer X Day care attendant X Period Costs Fixed Variable X X x Receptionist X X Kennel attendant Food and water bowls Overhead x X Depreciation on kennels x Rent x X Utilties and insurance x X Grooming tub 48″ x X Depreciation on heating system x X Clippers x Shampoo (Crystal Clear: five-gallon pail) x Towels x Scissors (7-inch straight, ear & nose) x Toys (used in day care only) x Cleaning products (used throughout) Dryer X X x X 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 Variable Costs Item Fixed Costs Shampoo Clipper(s) Bowls Towels Scissors $ 1.04 1.37 0.72 5.83 1.01 Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw $ 2,080.01 30.95 20.00 28.57 3.95 2.08 2.36 200.00 Total Variable Costs $ 9.97 Total Fixed Costs $ 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 Variable Costs Item Fixed Costs Day care attendant Toys Bowls Towels $ 2.88 0.27 0.19 1.40 Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw $ 232.14 150.00 214.29 29.64 15.59 16.78 200.00 Total Variable Costs $ 4.74 Total Fixed Costs $ 858.44 Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Item Variable Costs Item Fixed Costs Kennel attendant Bowls Towels $ 5.62 0.86 0.87 Depreciation on kennels Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw $ 80.00 386.90 250.00 357.14 49.40 25.98 29.55 200.00 Total Variable Costs $ 7.35 Total Fixed Costs $ 1,378.97 ACC202 – MANAGERIAL ACCOUNTING 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 Purchase answer to see full attachment Tags: Income Statement contribution margin break even analysis Fixed costs COS schedule User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

Description

In this second milestone of your final project, you will complete the pre-opening strategy tabs in your workbook. You must analyze the cost behaviors and systems of your industry, and conduct the relevant financial calculations to determine appropriate costing solutions. Be sure to use your work from Milestone One to inform your analysis.To complete this assignment, review the prompt and grading rubric in the Milestone Two Guidelines and Rubric document. When you have finished your work, submit the assignment here for grading and instructor feedback.

3 attachmentsSlide 1 of 3attachment_1attachment_1attachment_2attachment_2attachment_3attachment_3.slider-slide > img { width: 100%; display: block; }
.slider-slide > img:focus { margin: auto; }

Unformatted Attachment Preview

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 Two Guidelines and Rubric
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.

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:

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
Prompt: Continue your work 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.
Critical Elements
Proficient (100%)
Contribution Margin
Determines the contribution
margin per unit and contribution
margin ratio in the “Contribution
Margin Analysis” tab of the
workbook
Does not determine the
contribution margin per unit and
contribution margin ratio in the
“Contribution Margin Analysis”
tab of the workbook
40
Determines the break-even
points for achieving the target
profits in the “Break-Even
Analysis” tab of the workbook
Does not determine the breakeven points for achieving the
target profits in the “Break-Even
Analysis” tab of the workbook
40
Incorporates feedback from
Milestone One into the first
three tabs of the workbook
Fails to incorporate all feedback
from Milestone One into the first
three tabs of the workbook
20
Break-Even Points
Incorporate All
Feedback
Not Evident (0%)
Value
Total
100%
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
Groomer
X
Day care attendant
X
Period Costs
Fixed
Variable
X
X
x
Receptionist
X
X
Kennel attendant
Food and water bowls
Overhead
x
X
Depreciation on kennels
x
Rent
x
X
Utilties and insurance
x
X
Grooming tub 48″
x
X
Depreciation on heating system
x
X
Clippers
x
Shampoo (Crystal Clear: five-gallon pail)
x
Towels
x
Scissors (7-inch straight, ear & nose)
x
Toys (used in day care only)
x
Cleaning products (used throughout)
Dryer
X
X
x
X
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
Variable Costs
Item
Fixed Costs
Shampoo
Clipper(s)
Bowls
Towels
Scissors
$
1.04
1.37
0.72
5.83
1.01
Groomer
Rent
Loan
Utilities and Insurance
Depreciation on heating system
Cleaning Products: Odoban
Cleaning Products: Simple Green
Draw
$
2,080.01
30.95
20.00
28.57
3.95
2.08
2.36
200.00
Total Variable Costs
$
9.97
Total Fixed Costs
$
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
Variable Costs
Item
Fixed Costs
Day care attendant
Toys
Bowls
Towels
$
2.88
0.27
0.19
1.40
Rent
Loan
Utilities and Insurance
Depreciation on heating system
Cleaning Products: Odoban
Cleaning Products: Simple Green
Draw
$
232.14
150.00
214.29
29.64
15.59
16.78
200.00
Total Variable Costs
$
4.74
Total Fixed Costs
$
858.44
Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant.
BOARDING
Item
Variable Costs
Item
Fixed Costs
Kennel attendant
Bowls
Towels
$
5.62
0.86
0.87
Depreciation on kennels
Rent
Loan
Utilities and Insurance
Depreciation on heating system
Cleaning Products: Odoban
Cleaning Products: Simple Green
Draw
$
80.00
386.90
250.00
357.14
49.40
25.98
29.55
200.00
Total Variable Costs
$
7.35
Total Fixed Costs
$
1,378.97
ACC202 – MANAGERIAL ACCOUNTING
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

Purchase answer to see full
attachment

Tags:
Income Statement

contribution margin

break even analysis

Fixed costs

COS schedule

User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.