Good afternoon,

I have completed the following ACC 202 Milestone Three: Actual Costs and Revenue Data Appendix. I am having trouble figuring out the last two tabs, please help, I need assistance with the last two Excel sheets. Thank you Cindy

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ACC 202 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. 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
• 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.

The other costs incurred by the business include:

• General and administrative salaries
  • Receptionist: $1,950
• Office supplies: $200
• Other business equipment: $150

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.

A B C D E F G H 1 Milestone One - Cost Classification INSTRUCTIONS: 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. Direct Direct Item/Cost Material Labor Overhead Period Costs Fixed Variable 12 Salary - Collar maker X 13 Salary - Leash maker X 14 Salary - Harness maker 15 Salary - Receptionist 16 High-tensile strength nylon webb 17 |Polyesterylon ribbons X X 18 Buckles made of cast hardware X 19 Depreciation on sewing machines X 20 Rent 21 Utilities and insurance - - . . . . . .. - - . . . . . . . . 22 Scissors, thread, and cording X 23 Price tags X 24 Office supplies 25 Other business equipment 26 Loan payment 27 Salary to self 28C D E F G H J K L A B 183.33 $550*($500/1,500 square foot) =$183.33 14 Loan payment 15 Salary to self 166.67 $500 per month/3 services = $166.67 16 17 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 webbing $ 6.00 Leash maker's salary (monthly) 2,773.33 ($16 per hr.*40 hrs. per wk)*52 wks. per yr./12 months =$2,773.33 28 Polyesterylon ribbons 4.50 Depreciation on sewing machines 55.00 $3,300/60 months - 5 yrs. =$55 29 Buckles made of cast hardware 1.50 Rent 250.00 $750 per month "($500/$1,500 square foot)=$250 30 Price tags 0.10 Utilities and insurance 200.00 $600 per months*($500/1,500)=$200 31 Scissors, thread, and cording 400.00 $1,200/3 products =$400 32 Loan payment 183.33 $550*($500/1,500 square foot) =$183.33 33 Salary to self 166.67 $500 per month/3 services =$166.67 34 35 36 38 Total Variable Costs per Leash 12.10 Total Fixed Costs $ 4,028.33 39 41 Harnesses 44 Item Variable Cost/Item Item Fixed Costs 46 High-tensile strength nylon webbing $ 6.00 Harness maker's salary 2,946.67 (517 per hr.*40 hrs. per wk)*52 weeks peryr./12 months =$2,946.67 47 Polyesterylon ribbons 4.50 Depreciation on sewing machines 55.00 $3,300/60 months - 5 yrs. =$55 in in in in 48 Buckles made of cast hardware 4.00 Rent 250.00 5750 per month"($500/$1,500 square foot)=$250 49 Price tags 0.10 Utilities and insurance 200.00 $600 per months*($500/1,500)=$200 50 Scissors, thread, and cording 400.00 51,200/3 products =$400 51 Loan 183.33 $550*($500/1,500 square foot)=$183.33 52 Salary to self 166.67 $500 per month/3 services =$166.67 53 54 55 57 Total Variable Costs per Harness $ 14.60 Total Fixed Costs $ 4,201.67A B D F 1 2 3 Milestone Two - Contribution Margin Analysis 4 5 l5 COLLARS LEASHES HARNESSES 8 Sales Price per Unit 3 20.00 22.00 25.00 _9_ 1variable Cost per Unit 9.10 12.10 14.60 11 Contribution Margin S 10.90 9.90 10.40 12 14 A B C D E F G H Milestone Two - Break-Even Analysis A COLLARS LEASHES HARNESSES 7 Sales Price S 20.00 S 22.00 S 25.00 8 9 Fixed Costs S 4,028 5 4,028 S 4,202 10 11 Contribution Margin S 10.90 S 9.90 S 10.40 12 13 Break-Even Units (round up) 370 407 404 14 16 17 Target Profit 300.00 S 400.00 S 500.00 18 19 Break-Even Units (round up) 397 447 452 20 22 23 Target Profit S 500.00 S 600.00 S 650.00 24 25 Break-Even Units (round up) 415 468 467 26 281 2 Milestone Three - Statement of Cost of Goods Sold 3 4 6 Beginning Work in Process Inventory S 7 Direct Materials: 8 Materials: Beginning 9 Add: Purchases for month of January 5 20,000 11 Materials available for use 20,000 12 Deduct: Ending materials (4,000) 14 Materials Used 16,000 15 Direct Labor 8,493 16 Overhead 3,765 18 Total Costs S 28,258 19 20 Deduct: Ending Work in Process Inventory 0 21 22 Cost of Goods Sold S 28,258 23 24A B C D 2 Milestone Three - Income Statement 5 Revenue: 6 Collars S 7 Leashes Harnesses 9 10 Total Revenue: S 11 Cost of goods sold 12 Gross profit S 13 14 Expenses: 15 General and administrative salaries 16 Office supplies 17 Other business equipment 18 19 Total Expenses S 20 21 Net Income/Loss S - 22 23 24 26 27A B C D E F 1 Milestone Three - Variance Analysis 5 Data for Variance Analysis: Budgeted Budgeted Actual Actual (Standard) (Standard) Hours/Qty Rate Hours/Qty Rate 8 Labor 9 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 22 23 Direct Materials Quantity/Efficiency Variance 24 (Actual Quantity - Standard Quantity) x Standard Price S 25 26 Direct Materials Price Variance 27 (Actual Price - Standard Price) x Actual Quantity S 28 29