Good afternoon,

I am stuck on the Income Statement & Variances on my ACC 202 Milestone Three Project Workbook, please help.

Thank you

PEG 2112 Milestone Three: Actual Costs and Revenue Data Appendix 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. 'r'ou 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: I Materials purchased: $20,000 o Consumed 30% of the purchased materials I Direct labor: $8,493 I Dyerhead costs: $3,?ES 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 leyel options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were \".112! 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 dayr or 33 3: 21] = EEG per month. Established Sales Number of Items Sold per Prioe Da The other costs incurred by the business include: I General and administrative salaries o Receptionist: $1,950 I Office supplies: $200 I Other business equipment: $150 calm Variance At the end of the month, you find that the labor and materials spent on manufacturing collars was different from what you estimated: I The collar maker had to work nine hours a day instead of eight due to an increased demand for collars. I Because of the increased demandr the hourly rate you paid your employee for making the collars increased to $1.5[i. I An increase in the cost of raw material led the direct material cost per collar to increase to $10. I HoweyerI you also made and sold ED more collars than you expected to sell in the month. You now need to determine the 1.rariance in the materials and labor cost from what you estimated in Milestone Two based on the market research data. 2 Milestone Three - Income Statement 4 5 Revenue: 6 Collars S 39,520 7 Leashes 35,080 Established Sales Price Number of Items Sold per Day 8 Harnesses 39,700 Collars g $20 33 10 Total Revenue: S 114,300 $24 28 11 Cost of goods sold [28,258) $28 23 12 Gross profit S 86,042 Leashes 13 $22 28 14 Expenses: $26 23 15 General and administrative salaries S (1,950) $30 18 16 Office supplies (200) Harnesses 17 Other business equipment (150) $25 25 18 $30 22 19 Total Expenses S (2,300.00) $35 20 20 21 Net Income/Loss 83,742.00 22 23 24 26Milestone Three - Variance Analysis UID W N Data for Variance Analysis: Budgeted Budgeted Actual Actual (Standard) (Standard) Hours/Qty Rate Haure /On Bate Labor 160 16.00 180 16.50 LD CO 10 11 Materials 600 S 7.23 660 S 10.00 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 320.00 Unfavorable 19 20 Direct Labor Rate Variance 21 (Actual Rate - Standard Rate) x Actual Hours S 90.00 Unfavorable 22 23 Direct Materials Quantity/Efficiency Variance 24 (Actual Quantity - Standard Quantity) x Standard Price S 433.80 Unfavorable 25 26 Direct Materials Price Variance 27 (Actual Price - Standard Price) x Actual Quantity S 1,828.20 Unfavorable 28