Address the following rubric criteria: (SEE ATTACHMENTS FOR REFERENCE)

• Statement of Cost of Goods Sold: Prepare the statement of cost of goods sold in the "COGS" tab of the workbook. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table.
• Income Statement: Use the given revenue data to prepare the "Income Statement" tab table and calculate the net income. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table.
• Variance Analysis: Prepare the data in the "Variances" tab to determine whether the variances are favorable or unfavorable. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table.
• Complete thedata tablefor the variances by entering the budgeted (standard) and actual labor and material values. Remember to use the estimates for expected sales from your Milestone Two assignment.
• Determine thevariancesfor direct labor and direct materials in the "Variances" tab.
• Evaluate thesignificance of the variancesin the "Variances" tab, and mark them as favorable or unfavorable.

You have conducted some market research for style and size of products you want to use to launch your business. The market research has indicated the following sales price ranges will be optimal for your area depending on style of products you choose to sell: 0 Collars 0 With pricing at $20 per collar, you can expect to sell 30 collars per day. 0 With pricing at $24 per collar, you can expect to sell 25 collars per day. 0 With pricing at $28 per collar, you can expect to sell 20 collars per day 0 Leashes 0 With pricing at $22 per leash, you can expect to sell 28 leashes per day. 0 With pricing at $26 per leash, you can expect to sell 23 leashes per day. 0 With pricing at $30 per leash, you can expect to sell 18 leashes per day. 0 Harnesses 0 With pricing at $25 per harness, you can expect to sell 25 harnesses per day. 0 With pricing at $30 per harness, you can expect to sell 22 harnesses per day. 0 With pricing at $35 per harness, you can expect to sell 20 harnesses per day. Additionally, you will need to compare your break-even points for the following target profits for each area of your business to determine your prices: 0 Collars o Break-even 0 $300 target profit each month 0 $500 target profit each month 0 Leashes o Break-even 0 $400 target profit each month 0 $600 target profit each month 0 Harnesses o Break-even 0 $500 target profit each month 0 $650 target profit each month At the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same. For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month: 0 Materials purchased: $20,000 0 Consumed 80% of the purchased materials 0 Direct labor: $8,493.33 0 Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process are zero for the month. Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the rst month of operation. For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 33 x 20 = 660 per month. Established Sales Price Number of Items Sold per Day Collars $20 $24 $28 Leashes $22 $26 $30 Harnesses $25 $30 535 N to l-' on MM ML\" The other costs incurred by the business include: General and administrative salaries o Receptionist: $1,950 0 Owner salary: $500 Depreciation: $165 Rent: $750 Utilities and insurance: $600 Scissors, thread, and cording: $1,200 0 Loan repayment: $550 Variance At the end of the month, you find that the labor and materials spent on manufacturing collars was different from what you estimated: The collar maker had to work nine hours a day instead of eight due to an increased demand for collars. Because of the increased demand, the hourly rate you paid your employee for making the collars increased to $16.50. An increase in the cost of raw material led the direct material cost per collar to increase to $10. However, you also made and sold 60 more collars than you expected to sell in the month. You now need to determine the variance in the materials and labor cost from what you estimated in Milestone Two based on the market research data. Collars Item Variable Cost/Item Item Fixed Costs High-tensile strength nylon webbin $ 4.00 Collar maker's salary (monthly) 2,773.33 10 Polyesterylon ribbons 3.00 Depreciation on sewing machines 55.00 11 Buckles made of cast hardware 2.00 Rent 250.00 Price tags 0.10 Utilities and insurance 200.00 Scissors, thread, and cording 400.00 Loan payment 183.3 Salary to self 166.67 19 Total Variable Costs per Collar 9.10 Total Fixed Costs $ 4,028.33 20 22 23 Leashes 25 Item Variable Cost/Item Item Fixed Costs 27 High-tensile strength nylon webbin $ 6.00 Leash maker's salary (monthly) 2,773.33 28 Polyesterylon ribbons 4.50 Depreciation on sewing machines 55.00 29 Buckles made of cast hardware 1.50 Rent 250.00 Price tags 0.10 Utilities and insurance 200.00 Scissors, thread, and cording 400.00 Loan payment 183.3 Salary to self 166.67 36 38 Total Variable Costs per Leash $ 12.10 Total Fixed Costs $ 4,028.33 41 42 Harnesses 4 Item Variable Cost/Item Item Fixed Costs 46 High-tensile strength nylon webbin 6.00 Harness maker's salary 2,946.67 Polyesterylon ribbon 4.50 Depreciation on sewing machines 55.00 48 Buckles made of cast hardware 4.00 Rent 250.00 49 Price tags 0.10 Utilities and insurance 200.00 50 Scissors, thread, and cording 400.00 Loan 183.33 Salary to self 166.67 55 Total Variable Costs per Harness $ 14.60 Total Fixed Costs 4,201.67 58 60 61 63 64 Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even Analysis COGS Income Statement Variances + Ready Lod 86%Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit $28.00 $30.00 $35.00 Variable Cost per Unit $9.10 $12.10 $14.60 11 Contribution Margin $18.90 $17.90 $20.40 Cantribution Margin Analis Break-Even Analysis COGS Income Statement Variances Ready @ E - + 144v... Milestone Two - Break-Even Analysis w COLLARS LEASHES HARNESSES Sales Price 28.00 S 30.00 $ 35.00 9 Fixed Costs $ 4,028 $ 4,028 $ 4,202 10 17.90 ur 18.90 20.40 11 Contribution Margin 12 13 Break-Even Units (round up) 214.000 226.00 206.00 14 16 500.00 17 Target Profit 300.00 400.00 18 231.00 19 Break-Even Units (round up) 230.00 248.00 20 22 Target Profit $ 500.00 600.00 650.00 23 24 25 Break-Even Units (round up) 240.00 259.00 238.00 26 28 29 30 31 32 33 34 35 36 37 38 39 Break-Even Cost Classification Variable and Fixed Costs Contribution Margin Analysis ReadyMilestone Three - Statement of Cost of Goods Sold W N 6 Beginning Work in Process Inventory 0 Direct Materials: Materials: Beginning 0 4 00 Add: Purchases for month of January 11 Materials available for use 12 Deduct: Ending materials 14 Materials Used 15 16 Direct Labor 17 Overhead 19 Total Costs 20 21 Deduct: Ending Work in Process Inventory 22 23 Cost of Goods Sold 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even Analysis COGS Income Statement Variances + + 125 ReadyMilestone Three - Income Statement Revenue: Collars Leashes Harnesses 10 Total Revenue: $ 11 Cost of goods sold 12 Gross profit 13 14 Expenses: 15 General and administrative salaries 5 16 Depreciation 17 Rent 18 Utilities and insurance 19 Scissors, thread, and cording 20 Loan 21 22 Total Expenses 23 24 Net Income/Loss 25 26 27 29 COGS Income Statement + Cost Classification Contribution Margin Analysis Variances Variable and Fixed Costs Break-Even Analysis 102% Ready5 Data for Variance Analysis: Budgeted Budgeted Actual Actual (Standard) (Standard) Hours/Qty Rate 6 Hours/Qty Rate 8 Labor 10 11 Materials 12 13 14 15 Variances for Collar Sales Favorable/ 16 Variance Unfavorable 17 Direct Labor Time Variance 18 (Actual Hours - Standard Hours) x Standard Rate S 19 20 Direct Labor Rate Variance 21 (Actual Rate - Standard Rate) x Actual Hours S 23 Direct Materials Quantity/Efficiency Variance 24 (Actual Quantity - Standard Quantity) x Standard Price S 26 Direct Materials Price Variance 27 (Actual Price - Standard Price) x Actual Quantity 28 29 30 31 32 33 Variances + D Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even Analysis COGS Income Statement 100% Ready