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 broken into three areas [500 square feet each). You have taken out a loan for startup 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 0 One collar maker, who will be paid $16.00 per hour and work 40 hours per week a One leash maker, who will be paid $16.00 per hour and work 40 hours per week a One harness maker, who will be paid $17.00 per hour and work 40 hours per week a One receptionist, who will be paid $15.00 per hour and work 30 hours per week Other Costs 0 Rent: $750 per month; allocate based on square footage - Hightensile strength nylon webbing$12 per yard of webbing o 3 collars per yard of webbing o 2 leashes per yard of webbing 0 2 harnesses per yard of webbing o Polyesterylon ribbons$9 per yard of ribbon o 3 collars per yard of ribbon 0 2 leashes per yard of ribbon o 2 harnesses per yard of ribbon - Buckles made of cast hardware$0.50 per buckle o 4 buckles used per collar 0 3 buckles used per leash o 8 buckles used per harness o 3 industrial sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5 year life, zero salvage value) 0 Utilities and insurance: $600 per month; allocate based on square footage - Scissors, thread, cording: $1,200 a Price tags: $250 for 2,500 ($0.10 each} 0 Office supplies: $2,400 or $200 per month o Other business equipment: $2,000 a Loan payment of $550 per month 0 Salary drawn of $500 per month Prompt Use the given operational costs in the Milestone One Operational Costs Data Appendix Word Document to complete the first two tabs, "Cost Classification" and "Variable and Fixed Costs," in the Project Workbook Spreadsheet. Specifically, you must address the following rubric criteria: . Cost Classification. Accurately classify all your costs in the "Cost Classification" tab of your workbook. o Identify direct material, direct labor, overhead, and period costs. (Note: Fixed and variable costs have been classified for you.) . Variable and Fixed Costs. Complete the "Variable and Fixed Costs" tab of your workbook. (Note: Some costs are provided for you. Fill in only the missing costs.) o Determine your total variable cost per unit and the total fixed costs for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.A B C D E F G H J K L M N 0 P Q R S 5 INSTRUCTIONS: 6 Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs. 7 The Fixed and Variable cost classifications have been provided for you. 8 Direct Direct Item/Cost Material Labor Overhead Period Costs Fixed Variable 12 Salary - Collar maker X 13 Salary - Leash maker X 14 Salary - Harness maker 15 Salary - Receptionist 16 High-tensile strength nylon webbing X 17 Polyesterylon ribbons X 18 Buckles made of cast hardware X 19 Depreciation on sewing machines X 20 Rent X 21 Utilities and insurance X 22 Scissors, thread, and cording 23 Price tags X 24 Office supplies 25 Other business equipment 26 Loan payment X 27 Salary to self 28 29 30 31 Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even Analysis COGS Income Statement Varianc +A B C E F G H K L M N 4 5 Collars Item Variable Cost/Item Item Fixed Costs 9 High-tensile strength nylon webbing $ 4.00 Collar maker's salary (monthly) $ 2,773.33 10 Polyesterylon ribbons Depreciation on sewing machines 11 Buckles made of cast hardware Rent 12 Price tags Utilities and insurance 13 Scissors, thread, and cording 14 Loan payment 183.33 15 Salary to self 166.67 16 17 19 Total Variable Costs per Collar Total Fixed Costs 20 22 23 Leashes 25 Item Variable Cost/Item Item Fixed Costs 27 High-tensile strength nylon webbing Leash maker's salary (monthly) Polyesterylon ribbons Depreciation on sewing machines 29 Buckles made of cast hardware Rent 30 Price tags Utilities and insurance 31 Scissors, thread, and cording 32 Loan payment 33 Salary to self 34 35 36 38 Total Variable Costs per Leash Total Fixed Costs $ Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even Analysis COGS Income Statement38 39 41 42 4e 47 48 49 50 51 52 53 54 55 57 58 60 61 A B TotalVariahle Costs per Leash Harnesses Item Variable Cost/Item Hightensile strength nylon webbing Polyesterylon ribbons Buckles made of ca st hardware Price tags TotalVariable Costs per Harness Total Fixed Costs Item Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Salary to self Total Fixed Costs Fixed Costs