Could you help me solve the Actual Costs and Revenue Data Chart? Can you help me understand it by breaking it down?

Data

Cost Classification

Variable and Fixed Costs

Contribution Margin Analysis (Chosen Margin is highlighted yellow)

Break-Even Analysis

Statements of C.O.G.S.

Income Statement

Variances

. Specifically, you must address the following rubric criteria: 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 the data table for 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. o Determine the variances for direct labor and direct materials in the "Variances" tab. Evaluate the significance of the variances in the "Variances" tab, and mark them as favorable or unfavorable. . o 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: . Materials purchased: $20,000 Consumed 80% of the purchased materials Direct labor: $8,493.33 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 first 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. Number of Items Sold per Day 33 28 23 Established Sales Price Collars $20 $24 $28 Leashes $22 $26 $30 Harnesses $25 $30 $35 28 23 18 25 22 20 The other costs incurred by the business include: O O . General and administrative salaries Receptionist: $1,950 Owner salary: $500 Depreciation: $165 Rent: $750 Utilities and insurance: $600 Scissors, thread, and cording: $1,200 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. 4 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 9 Item/Cost Material Labor Overhead Period Costs Fixed Variable xxx XXX 12 Salary - Collar maker 13 Salary - Leash maker 14 Salary - Harness maker 15 Salary - Receptionist 16 High-tensile strength nylon webbing 17 Polyesterylon ribbons 18 Buckles made of cast hardware 19 Depreciation on sewing machines ixxx X 20 Rent X x 21 Uti and insurance 22 Scissors, thread, and cording 23 Price tags 24 Office supplies 25 Oter business equipment 26 Loan payment 27 Salary to self XXXX Xix 28 29 30 5 6 COLLARS LEASHES HARNESSES $ $ $ 28.00 9.10 30.00 12.10 35.00 14.60 8 Sales Price per Unit 9 Variable Cost per Unit 11 Contribution Margin 12 $ 18.90 $ 17.90 $ 20.40 14 Collar 327 372.5 378 Leashes 15 Chosen Margin Hifhkighted Yellow 16 Selling Price per Unit 17 30 Collar at $20 per collar 18 25 Collar at $24 per collar 19 20 Collar at $28 per collar 20 21 28 Leashes at $22 per leashes 22 23 Leashes at $26 per leashes 23 18 Leashes at $30 per leashes 24 25 25 harness at $25 per harness 26 22 harness at $30 per harness 27 20 harness at $35 per harness 277.2 319.7 322.2 Harness 260 338.8 408 28 4 COLLARS LEASHES HARNESSES 00 (U 7 Sales Price $ 28.00 $ 30.00 $ 35.00 9 Fixed Costs 4,028 4,028 4,202 10 11 Contribution Margin $ 18.90 $ 17.90 $ 20.40 12 Break-Even Units (round up) 213.14 225.05 205.96 13 14 Target Profit $ 300.00 400.00 $ 500.00 16 17 18 19 20 Break-Even Units (round up) 229.01 247.39 230.47 22 23 Target Profit $ 500.00 $ 600.00 $ 650.00 24 25 Break-Even Units (round up) 239.59 258.57 237.83 26 20 0 4 6 Beginning Work in Process Inventory 7 Direct Materials: 8 Materials: Beginning 9 Add: Purchases for month of January O 11 Materials available for use Deduct: Ending materials 12 14 Materials Used 15 16 Direct Labor 17 Overhead 0 19 Total Costs 20 21 Deduct: Ending Work in Process Inventory 22 23 Cost of Goods Sold 24 25 4 $ 5 Revenue: 6 Collars 7 Leashes 8 Harnesses 9 $ $ $ 10 Total Revenue: 11 Cost of goods sold 12 Gross profit 13 14 Expenses: 15 General and administrative salaries 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 - $ $ 4 5 Data for Variance Analysis: Budgeted (Standard) Hours/Qty Budgeted (Standard) Rate Actual Hours/Qty Actual Rate 6 7 8 Labor 9 10 11 Materials 12 13 14 15 Variances for Collar Sales Favorable/ Unfavorable Variance $ $ 16 17 Direct Labor Time Variance 18 (Actual Hours - Standard Hours) x Standard Rate 19 20 Direct Labor Rate Variance 21 (Actual Rate - Standard Rate) x Actual Hours 22 23 Direct Materials Quantity/Efficiency Variance 24 (Actual Quantity - Standard Quantity) x Standard Price 25 26 Direct Materials Price Variance 27 (Actual Price - Standard Price) x Actual Quantity 28 $ $ 29