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 x
Salary - Leash maker x x
Salary - Harness maker x x
Salary - Receptionist x
High-tensile strength nylon we
ing x x
Polyeste
nylon ri
ons x x
Buckles made of cast hardware x x
Depreciation on sewing machines x x
Rent x x
Utilities and insurance x x
Scissors, thread, and cording x x
Price tags x x
Office supplies x
Other business equipment x
Loan payment x x
Salary to self x 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 $ 3.00 Depreciation on sewing machines $ XXXXXXXXXX
Buckles made of cast hardware $ 2.00 Rent $ XXXXXXXXXX
Price tags $ 0.10 Utilities and insurance $ XXXXXXXXXX
Scissors, thread, and cording $ XXXXXXXXXX
Loan payment $ XXXXXXXXXX
Salary to self $ XXXXXXXXXX
Total Variable Costs per Collar $ 9.10 Total Fixed Costs $ 4,028.33
Leashes
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon we
ing $ 6.00 Leash maker's salary (monthly) $ 2,773.33
Polyeste
nylon ri
ons $ 4.50 Depreciation on sewing machines $ XXXXXXXXXX
Buckles made of cast hardware $ 1.50 Rent $ XXXXXXXXXX
Price tags $ 0.10 Utilities and insurance $ XXXXXXXXXX
Scissors, thread, and cording $ XXXXXXXXXX
Loan payment $ XXXXXXXXXX
Salary to self $ XXXXXXXXXX
Total Variable Costs per Leash $ XXXXXXXXXX Total Fixed Costs $ 4,028.33 $ 4,028.33
Harnesses
Item Variable Cost/Item Item Fixed Costs
High-tensile strength nylon we
ing $ 6.00 Harness maker's salary $ 2,946.67
Polyeste
nylon ri
ons $ 4.50 Depreciation on sewing machines $ XXXXXXXXXX
Buckles made of cast hardware $ 4.00 Rent $ XXXXXXXXXX
Price tags $ 0.10 Utilities and insurance $ XXXXXXXXXX
Scissors, thread, and cording $ XXXXXXXXXX
Loan $ XXXXXXXXXX
Salary to self $ XXXXXXXXXX
Total Variable Costs per Harness $ XXXXXXXXXX Total Fixed Costs $ 4,201.67
&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 Scenario 1 - (When Sales Price is $20 , $22 & $25 per unit)
COLLARS LEASHES HARNESSES
Sales Price per Unit $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX
Variable Cost per Unit 9.10 12.10 14.60
Contribution Margin $ XXXXXXXXXX $ 9.90 $ XXXXXXXXXX Contribution Margin = (Sales price per unit ) - (Variable cost per unit)
Milestone Two - Contribution Margin Analysis Scenario 2 - (When Sales Price is $24 , $26 & $30 per unit)
COLLARS LEASHES HARNESSES
Sales Price per Unit $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX
Variable Cost per Unit 9.10 12.10 14.60
Contribution Margin $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX Contribution Margin = (Sales price per unit ) - (Variable cost per unit)
Milestone Two - Contribution Margin Analysis Scenario 3 - (When Sales Price is $28 , $30 & $35 per unit)
COLLARS LEASHES HARNESSES
Sales Price per Unit $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX
Variable Cost per Unit 9.10 12.10 14.60
Contribution Margin $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX Contribution Margin = (Sales price per unit ) - (Variable cost per unit)
&8ACC202 - MANAGERIAL ACCOUNTING
HOME
xl/drawings/drawing6.xml#Home
Break-Even Analysis
Milestone Two - Break-Even Analysis Scenario 1 - (When Sales Price is $20 , $22 & $25 per unit)
COLLARS LEASHES HARNESSES
Sales Price $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX
Fixed Costs $ 4,028 $ 4,028 $ 4,202
Contribution Margin $ XXXXXXXXXX $ 9.90 $ XXXXXXXXXX
Break-Even Units (round up) 370 407 405 BEP = (Fixed Cost $ ) / (Contribution$ per unit)
Target Profit $ 300 $ 400 $ 500
Break-Even Units (round up) 398 448 453 BEP = (Fixed Cost $ + Desired Profit ) / (Contribution$ per unit)
Target Profit $ 500 $ 600 $ 650
Break-Even Units (round up) 416 468 467 BEP = (Fixed Cost $ + Desired Profit ) / (Contribution$ per unit)
Milestone Two - Break-Even Analysis Scenario 2 - (When Sales Price is $24 , $26 & $30 per unit)
COLLARS LEASHES HARNESSES
Sales Price $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX
Fixed Costs $ 4,028 $ 4,028 $ 4,202
Contribution Margin $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX
Break-Even Units (round up) 271 290 273 BEP = (Fixed Cost $ ) / (Contribution$ per unit)
Target Profit $ 300 $ 400 $ 500
Break-Even Units (round up) 291 319 306 BEP = (Fixed Cost $ + Desired Profit ) / (Contribution$ per unit)
Target Profit $ 500 $ 600 $ 650
Break-Even Units (round up) 304 333 316 BEP = (Fixed Cost $ + Desired Profit ) / (Contribution$ per unit)
Milestone Two - Break-Even Analysis Scenario 3 - (When Sales Price is $28 , $30 & $35 per unit)
COLLARS LEASHES HARNESSES
Sales Price $ XXXXXXXXXX $ XXXXXXXXXX $ XXXXXXXXXX
Fixed Costs $ 4,028 $ 4,028 $ 4,202
Contribution Margin $ XXXXXXXXXX $