ACC 202 Project Workbook
Instructions
Southern New Hampshire University
College of Continuing Education (COCE)
ACC202 - Managerial Accounting
MILESTONE 1 (Due in Module 2) MILESTONE 2 (Due in Module 4) MILESTONE 3 (Due in Module 5)
1. 1. 1.
Name Choose a price range and calculate: Create a Cost of Goods Manufactured Schedule
Location Grooming
Vision Day Care
Mission Boarding
2. 2. 2.
Identify the following: Calculate the
eak-even units Create an Income Statement
Direct Materials Grooming Revenue will be provided end of week 4
Diret Labor Day Care
Manufacturing Overhead Boarding
Period Costs Calculate the
eak-even for target profits
3. Grooming 3.
Day Care
Calculate the Variable & Fixed Costs for: Boarding Calculate for the Grooming line:
Grooming Direct Labor Time Variance
Day Care Direct Labor Rate Variance
Boarding Direct Materials Efficiency Variance
Direct Materials Price Variance
ACC202 - MANAGERIAL ACCOUNTING
Company Profile
xl/drawings/drawing1.xml#CompanyProfileVariable & Fixed Costs
xl/drawings/drawing1.xml#VariableFixedCostsCost Classification
xl/drawings/drawing1.xml#CostClassificationContribution Margin
xl/drawings/drawing1.xml#ContributionMarginBreak-Even Analysis
xl/drawings/drawing1.xml#BreakevenAnalysisCOGM Schedule
xl/drawings/drawing1.xml#COGMScheduleIncome Statement
xl/drawings/drawing1.xml#COGMScheduleVariances
xl/drawings/drawing1.xml#VariancesInstructions Milestone 1
xl/drawings/drawing1.xml#InstructionsMilestone1Instructions Milestone 2
xl/drawings/drawing1.xml#'Instructions%20-%20Milestone%202'!InstructionsMilestone2Instructions Milestone 3
xl/drawings/drawing1.xml#'Instructions%20-%20Milestone%203'!InstructionsMilestone3
Instructions - Milestone 1
Southern New Hampshire University
College of Continuing Education (COCE)
ACC202 - Managerial Accounting
INSTRUCTIONS FOR MILESTONE 1 (Due Week 2)
IMPORTANT NOTE:
Make sure to completely review the Ru
ic 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
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)
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 Ca
y 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
Ru
erized 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
HOME
xl/drawings/drawing2.xml#Home
Cost Classification
Milestone One - Cost Classification
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.
Item/Cost Direct
Material Direct
Labor
Overhead Period Costs Fixed Variable
Salary - Collar maker x
Salary - Leash maker x
Salary - Harness maker x
Salary - Receptionist
High-tensile strength nylon we
ing x
Polyeste
nylon ri
ons x
Buckles made of cast hardware x
Depreciation on sewing machines x
Rent x
Utilities and insurance x
Scissors, thread, and cording x
Price tags x
Office supplies
Other business equipment
Loan payment x
Salary to self x
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
xl/drawings/drawing3.xml#Home
Variable and Fixed Costs
Milestone One - Variable and Fixed Costs
Collars
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon we
ing $ 4.00 Collar maker's salary (monthly) $ 2,773.33
Polyeste
nylon ri
ons Depreciation on sewing machines
Buckles made of cast hardware Rent
Price tags Utilities and insurance
Scissors, thread, and cording
Loan payment $ XXXXXXXXXX
Salary to self $ XXXXXXXXXX
Total Variable Costs per Collar Total Fixed Costs
Leashes
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon we
ing Leash maker's salary (monthly)
Polyeste
nylon ri
ons Depreciation on sewing machines
Buckles made of cast hardware Rent
Price tags Utilities and insurance
Scissors, thread, and cording
Loan payment
Salary to self
Total Variable Costs per Leash Total Fixed Costs $ - 0
Harnesses
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon we
ing Harness maker's salary
Polyeste
nylon ri
ons Depreciation on sewing machines
Buckles made of cast hardware Rent
Price tags Utilities and insurance
Scissors, thread, and cording
Loan
Salary to self
Total Variable Costs per Harness Total Fixed Costs
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
xl/drawings/drawing4.xml#Home
Instructions - Milestone 2
Southern New Hampshire University
College of Continuing Education (COCE)
ACC202 - Managerial Accounting
INSTRUCTIONS FOR MILESTONE 2 (Due Week 4)
IMPORTANT NOTE:
Make sure to completely review the Ru
ic 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
eak-even units (round up) for each service
Calculate the
eak-even units (round up) for suggested target profit levels for each service
ACC202 - MANAGERIAL ACCOUNTING
HOME
xl/drawings/drawing5.xml#Home
Contribution Margin Analysis
Milestone Two - Contribution Margin Analysis
COLLARS LEASHES HARNESSES
Sales Price per Unit
Variable Cost per Unit
Contribution Margin
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
xl/drawings/drawing6.xml#Home
Break-Even Analysis
Milestone Two - Break-Even Analysis
COLLARS LEASHES HARNESSES
Sales Price $ - 0 $ - 0 $ - 0
Fixed Costs $ - 0 $ - 0 $ - 0
Contribution Margin $ - 0 $ - 0 $ - 0
Break-Even Units (round up) - 0 - 0 - 0
Target Profit $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX
Break-Even Units (round up) - 0 - 0 - 0
Target Profit $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX
Break-Even Units (round up) - 0 - 0 - 0
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
xl/drawings/drawing7.xml#Home
Instructions - Milestone 3
Southern New Hampshire University
College of Continuing Education (COCE)
ACC202 - Managerial Accounting
INSTRUCTIONS FOR MILESTONE 3 (Due Week 5)
IMPORTANT NOTE:
Make sure to completely review the Ru
ic 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
xl/drawings/drawing8.xml#Home
COGS
Milestone Three - Statement of Cost of Goods Sold
Beginning Work in Process Inventory $ - 0
Direct Materials:
Materials: Beginning 0
Add: Purchases for month of January
Materials available for use
Deduct: Ending materials
Materials Used
Direct Labo
Overhead
Total Costs
Deduct: Ending Work in Process Inventory 0
Cost of Goods Sold
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
xl/drawings/drawing9.xml#Home
Income Statement
Milestone Three - Income Statement
Revenue:
Collars $ - 0
Leashes - 0
Harnesses - 0
Total Revenue: $ - 0
Cost of goods sold - 0
Gross profit $ - 0
Expenses:
General and administrative salaries $ - 0
Office supplies - 0
Other business equipment - 0
Total Expenses $ - 0
Net Income/Loss $ - 0
&8ACC202 - MANAGERIAL ACCOUNTING
Variances
Milestone Three - Variance Analysis
Data for Variance Analysis:
Budgeted (Standard)
Hours/Qty Budgeted (Standard)
Rate Actual
Hours/Qty Actual
Rate
Labo
Materials
Variances for Collar Sales
Variance Favorable
Unfavorable
Direct Labor Time Variance
(Actual Hours - Standard Hours) x Standard Rate $ - 0
Direct Labor Rate Variance
(Actual Rate - Standard Rate) x Actual Hours $ - 0
Direct Materials Quantity/Efficiency Variance
(Actual Quantity - Standard Quantity) x Standard Price $ - 0
Direct Materials Price Variance
(Actual Price - Standard Price) x Actual Quantity $ - 0
&8ACC202 - MANAGERIAL ACCOUNTING
ACC 202 Milestone One Operational Costs Data Appendix
ACC 202 Milestone One: Operational Costs Data Appendix
You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning, you have estimates for the various operating costs for your business.
The total square footage for the sewing rooms is 1,500 square feet
oken into three areas (500 square feet each). You have taken out a loan for start-up costs, and the monthly payment is $550; it goes into effect immediately and should be accounted for in your costs. You will also collect a modest salary for the first year of $500 per month; remember to divide evenly among the services.
Salary and Hiring Data
One collar maker, who will be paid $16.00 per hour and work 40 hours per week
One leash maker, who will be paid $16.00 per hour and work 40