Copier- $500 per month Utilities- $500 per month Supplies - $500 per month Business Insurance- $500 per month Errors and Omission Insurance $500 per month. Depreciation on computer and fixtures is $200 per month. Miscellaneous firm costs are $300 per month. You expect to do 150 inspections per month. Presentations- Memo format, 1- Firm Name, location, website, and any marketing ideas 2- Vision Statement 3- Core Competencies 4- Variable Costs- list and explain variable costs 5- Fixed Costs- List and explain fixed costs You have been hired as the new cost accountant operations manager for a home inspection service in Fayetteville, NC. You are responsible for several things that relate to a new business and the cost per home inspection. You do not do any inspections, so your salary is not in the product cost Your salary is $48,000 per year, plus benefits, and you get $5.00 per inspection as an incentive Based on the following information, construct a memo that gives CVP analysis, the variable costs and fixed costs for the business. Your final goal is to develop a cost per home inspection to charge to potential clients. This is a real-world application and can have positive and negative issues Cost Data: $5.00 per inspection for paper and printing $5.00 per inspection for software $50.00 per inspection as direct labor. Mr. McKinzie has agreed to prepare all home inspections for $50.00 per item and can do them in 1-hour. He is an independent contractor, thus no payroll taxes or benefits The owner reviews the inspections, and spends 15 minutes per review or $10.00. This is overview and part of the direct labor. The partner makes $4,000 per month as a draw. There are no taxes paid by the practice, as this is a partnership. His wife works as the receptionist and is paid $2.000 per month, as a draw. Your taxes, benefits and insurance are $2,000 per month for computation purposes Firm costs: Rent- $2,000 per month Phone/Internet- $500 per month Copier- $500 per month Utilities- $500 per month Supplies - $500 per month Business Insurance- $500 per month Errors and Omission Insurance $500 per month. Depreciation on computer and fixtures is $200 per month. Miscellaneous firm costs are $300 per month. You expect to do 150 inspections per month. Presentations- Memo format, 1- Firm Name, location, website, and any marketing ideas 2- Vision Statement 3- Core Competencies 4- Variable Costs- list and explain variable costs 5- Fixed Costs- List and explain fixed costs You have been hired as the new cost accountant operations manager for a home inspection service in Fayetteville, NC. You are responsible for several things that relate to a new business and the cost per home inspection. You do not do any inspections, so your salary is not in the product cost Your salary is $48,000 per year, plus benefits, and you get $5.00 per inspection as an incentive Based on the following information, construct a memo that gives CVP analysis, the variable costs and fixed costs for the business. Your final goal is to develop a cost per home inspection to charge to potential clients. This is a real-world application and can have positive and negative issues Cost Data: $5.00 per inspection for paper and printing $5.00 per inspection for software $50.00 per inspection as direct labor. Mr. McKinzie has agreed to prepare all home inspections for $50.00 per item and can do them in 1-hour. He is an independent contractor, thus no payroll taxes or benefits The owner reviews the inspections, and spends 15 minutes per review or $10.00. This is overview and part of the direct labor. The partner makes $4,000 per month as a draw. There are no taxes paid by the practice, as this is a partnership. His wife works as the receptionist and is paid $2.000 per month, as a draw. Your taxes, benefits and insurance are $2,000 per month for computation purposes Firm costs: Rent- $2,000 per month Phone/Internet- $500 per month
