ACC 202 Milestone Three Guidelines and Rubric Overview: In the third milestone, you will jump forward in time: Imagine that your business has already opened. Use the updated scenario information analyze your company's performance. Post-opening Scenario: Your angel investors are silent in relation to the business; however, they require board meetings for status updates on the con financial health. Therefore, you need to analyze your company's performance over the last month using the data provided below. For your variance analysis, use the following financial data: Grooming Labor Standard Hours Standard Rate Actual Hours Actual Rate 150 $12 180 $11.50 Grooming Materials Standard Quantity Standard Price Actual Quantity Actual Price 1000 1200 $3 Prompt: Complete your work by assessing your company's financial performance, specifically addressing the following critical elements: Financial Statements o Create a statement of cost of services in the "COS Schedule" tab. o Create an income statement in the "Income Statement" tab. Variance Analysis o identify all variances for the direct labor time and the materials price in the "Variances" tab. o Evaluate the significance of the variances in the "Variances" tab. Incorporate all feedback from previous milestones to finalize your workbook The Dog Whisperer 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 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. The Dog Whisperer 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 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. The Dog Whisperer 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 The Dog Whisperer Income Statement For the Month Ended January 31, XXXX Revenue: Grooming Day Care Boarding Tota Revenue Cost of Services * Gross Profit $ . Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities and Insurance Total Fynenses Total Expenses $ Net Income / Loss $ . * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. The Dog Whisperer 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: Actual Rate Standard Hours / Qty 150 1,000 Standard Rate 12.00 2.00 Actual Hours / Qty 180 1,200 Grooming Labor Grooming Materials $ $ $ $ 11.50 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 The Dog Whisperer 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 20.00 BOARDING 30.00 Sales Price $ $ $ GROOMING 35.00 2,368 Fixed Costs $ 859 $ 1,379 Contribution Margin $ 15.26 $ 22.64 $ 25.03 Break-even Units (round up) 1,126.00 1,827.00 3,311.00 Target Profit $ 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) 886.00 1,405.00 2,408.00 Target Profit 667.00 $ 909.00 1,500.00 Break-even Units (round up) 903.00 1,419.00 1,595.00 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 Item Shampoo Clipper(s) Bowls Towels Scissors Variable Costs 1.04 1.37 0.72 5.83 1.01 Fixed Costs 2,080.00 30.95 20.00 28.57 Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs 3.95 2.08 2.36 200.00 2,367.91 Total Variable Costs $ 9.97 $ 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 2.88 Rent 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance 214.29 Towels 1.40 Depreciation on heating system 29.64 Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 200.00 Total Variable Costs $ 4.65 Total Fixed Costs $ 858.44 Draw 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 Total Fixed Costs 80.00 386.90 250.00 357.14 49.40 25.98 29.55 200.00 1,378.97 Total Variable Costs ACC 202 Milestone Three Guidelines and Rubric Overview: In the third milestone, you will jump forward in time: Imagine that your business has already opened. Use the updated scenario information analyze your company's performance. Post-opening Scenario: Your angel investors are silent in relation to the business; however, they require board meetings for status updates on the con financial health. Therefore, you need to analyze your company's performance over the last month using the data provided below. For your variance analysis, use the following financial data: Grooming Labor Standard Hours Standard Rate Actual Hours Actual Rate 150 $12 180 $11.50 Grooming Materials Standard Quantity Standard Price Actual Quantity Actual Price 1000 1200 $3 Prompt: Complete your work by assessing your company's financial performance, specifically addressing the following critical elements: Financial Statements o Create a statement of cost of services in the "COS Schedule" tab. o Create an income statement in the "Income Statement" tab. Variance Analysis o identify all variances for the direct labor time and the materials price in the "Variances" tab. o Evaluate the significance of the variances in the "Variances" tab. Incorporate all feedback from previous milestones to finalize your workbook The Dog Whisperer 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 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. The Dog Whisperer 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 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. The Dog Whisperer 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 The Dog Whisperer Income Statement For the Month Ended January 31, XXXX Revenue: Grooming Day Care Boarding Tota Revenue Cost of Services * Gross Profit $ . Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities and Insurance Total Fynenses Total Expenses $ Net Income / Loss $ . * Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain. The Dog Whisperer 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: Actual Rate Standard Hours / Qty 150 1,000 Standard Rate 12.00 2.00 Actual Hours / Qty 180 1,200 Grooming Labor Grooming Materials $ $ $ $ 11.50 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 The Dog Whisperer 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 20.00 BOARDING 30.00 Sales Price $ $ $ GROOMING 35.00 2,368 Fixed Costs $ 859 $ 1,379 Contribution Margin $ 15.26 $ 22.64 $ 25.03 Break-even Units (round up) 1,126.00 1,827.00 3,311.00 Target Profit $ 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) 886.00 1,405.00 2,408.00 Target Profit 667.00 $ 909.00 1,500.00 Break-even Units (round up) 903.00 1,419.00 1,595.00 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 Item Shampoo Clipper(s) Bowls Towels Scissors Variable Costs 1.04 1.37 0.72 5.83 1.01 Fixed Costs 2,080.00 30.95 20.00 28.57 Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs 3.95 2.08 2.36 200.00 2,367.91 Total Variable Costs $ 9.97 $ 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 2.88 Rent 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance 214.29 Towels 1.40 Depreciation on heating system 29.64 Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 200.00 Total Variable Costs $ 4.65 Total Fixed Costs $ 858.44 Draw 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 Total Fixed Costs 80.00 386.90 250.00 357.14 49.40 25.98 29.55 200.00 1,378.97 Total Variable Costs