Can I get some help??? Did I complete this problem correctly?
GENERAL You plan to open a pet services business that will offer dog grooming. day care and boarding COMPANY PROFILE TAB Determine a company name. Be creative fe.q. "Inspiring Dog Care" Pick a location feq. "Chicago" Define your company's vision and mission for how your business will add value to the community 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 Groening: The Groomer cangroom 5 dogs a day, 5 days a week Esch grooming takes 1.5 labor hours Day Care: The Day Care con 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: Loon for start-up costo monthly payment of $420; in effect immediately; limited cash and loon funding. ved angel inventore Modest monthly draw of $600 a month for first year; should be divided evenly amoung the services (grooming, day care, bourdin SALARY & HIRING DATA Groomer (Allisonl - $12.00 an hour, 40 hours a week Day Core Attendant Beverly). 8.00 per hour, based on need Receptionist (Cathic) - $8.50 per hour, 30 hours a week Kennel Attendant (Ben) - $11.50 per hour, based on need OTHER COST DATA Groowing: Dog Grooming Arm - $300 Grooming Table 1300 Grooming Tub. 12,800 Clippers - $136.93, can be used for 100 grooms Shampoo - $103.36 per 5-gallon pail: can be used for 100 grooms Salon Tuff Capri Mobile Carry Cart - $90 Scissors 17 inch straight) - $194.99, used for 200 qrooms Sciasors fear and nosel - $7.49; used for 200 grooms Day Care: Fencing for Day Care are $1249 Fencing Installation - $1,000 Toys - $3.23 per 6 pack; one toy will last for two dogs in dar care per day Rubberiesd Flooring for Day Care - $3,800 Boarding 12 Kennels: Depreciation is $80 per month General: Food & Water bowls - $3.59 per unit Dw Care - two bowls for every 75 dogs that attend dapcare Bourding two bowls lost for every 100 dogs boarded; two bowls per kennel Grooming-coch bowlsts for 20 rooms and you need 4 bowls at all times Towels $34.99 per 12 pack Dwy Cure - 12 towels for every 25 dogs Bourding - 12 towels for crery 40 dogs Grooming - 2 towels for every room 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 Croc Bank - 12,200 per set of 5 Dryer - 11250 Cleaning Products Odoban - $14.55 per gallon Each area wil dilute 1 oz to 1 gallon of water: Allocate based on square footage Simple Grech - $15.66 per gallon, Each area will dilute 1 oa to 1 gallon of water; Allocate based on square footage MILESTONE 1 - Cost Classification Exercise INSTRUCTIONS: Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. Other costs have been provided for you. The fixed and variable cost classifications have been provided for you. For more information see Objective 1 in Chapter 5. Direct Material Direct Labor Item/Cost Overhead Period Costs Fixed Variable Costs (Payments) for the Purpose of Generating Revenues Groomer Period Costs Product Costs Day care attendant Receptionist Direct Materials ..... ..... Kennel attendant Food and water bowls Depreciation on kennels Direct Labor Rent Utilties and insurance Overhead Grooming tub 48" Depreciation on heating system IX: X Clippers Shampoo (Crystal Clear: five-gallon pail) X Towels X Inventory (Balance Sheet) X Scissors (7-inch straight, ear & nose) Toys (used in day care only) X X Cleaning products (used throughout) Dryer ................. Cost of Goods Sold (Income Statement) Selling and Admin Exp. (Income Statement) MILESTONE 1 - Variable & Fixed Cost Exercise INSTRUCTIONS: 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 Variable Costs 1.04 1.37 0.72 Shampoo Clipper(s) Bowls Towels Scissors $ Fixed Costs 2,080.00 30.95 20.00 28.57 3.95 5.83 Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Fixed Costs 1.01 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 241.29 Towels 1.40 Depreciation on heating system 29.64 Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 Draw 200.00 Total Variable Costs $ 4.65 Total Fixed Costs $ 858.44 5.62 Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Item Variable Costs Item Kennel attendant Depreciation on kennels Bowls 0.86 Rent Towels 0.87 Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Variable Costs $ 7.35 Total Fixed Costs Fixed Costs 80.00 386.90 250.00 375.14 49.40 25.98 29.55 200.00 13,367.42 $
