Managerial Accounting INSTRUCTIONS FOR MILESTONE 1 (Due Week 2) IMPORTANT NOTE Make sure to completely review the Rubric for Milestone 1 Use the data from this Milestone and begin working on your tinal presentation due in Milestone (week 7) SALARY & HIRING DATA Groomer (Alison)- $12.00 an hour, 40 hours a week Day Care Attendant (Beverly!- $9.00 per hour, based on need Receptionist (Cathie)- $8 50 per hour, 30 hours a week Kennel Attendant (Ben $1150 per hour, hased on need OTHER COST DATA Grooming Dog Grooming Arm $300 Grooming Table-$900 Grooming Tub-$2,800 Clippers -$136.99: can be used for 100 grooms Shampoo-$103 96 per 5-gallon pail: can be used far 100 grooms Salon Tuff Capri Mobile Carry Cart $90 Scissors (7 inch straight) $194.99, used for 200 grooms Scissors (ear and nose)-$7 49, used for 200 grooms Day Care: Fencing for Day Care area $1.249 Fencing Installation - $1,000 Toys $3.29 per 6 pack; one toy will last far two dogs in day care per day Rubberized Flooring for Day Care $3,800 Boarding: 12 Kennels; Depreciation is $80 per month General: Food & Water bowls 53.59 per unit Day Care - two bowls last for every 75 dogs that attend daycare Boarding - two bowls last for every 100 dogs boarded, two bowls per kennel Grooming-each bowl lasts for 20 grooms and you need 4 bowls at all times Towels - $34.99 per 12 pack Day Care - 12 towels for every 25 dogs Boarding 12 towels for every 40 dogs Grooming- 2 towels for every groorn per day Heating System - $10,000; Depreciation is $83 per month; Allocate based on square footage Rent -5650 per month; Allocate based on square footage Utilities/insurance $600 per month; Allocate based on square footage Cage Bank-$2,200 per set of 5 Dryer-$1,250 Cleaning Products Odoban $14.55 per gallon; Each area wil dilute 1 oz to 1 gallon of water: Allocate based on square footage Simple Green-$15 66 per galion; Each area will dilute 1 oz to 1 gallon of water; Allocate based on square footage Managerial Accounting INSTRUCTIONS FOR MILESTONE 1 (Due Week 2) IMPORTANT NOTE Make sure to completely review the Rubric for Milestone 1 Use the data from this Milestone and begin working on your final presentation due n Milestone & (Week 7) ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs): GENERAL Yau plan to open a pet services business that will otfe dog groumirg, day care and boarding COMPANY PROFILE TAB Determine a company name Be creative i. EInspiring Dog Carey Pick a location le. "Chicago" Define your cumpany's visian and mission for how your business will add value to the sommunity COST CLASSIFICATION ccurately classify all of your costs (direct material, d rect labor, manutacturing cverhead, 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 Grooming The Groomer can groom 5 dogs a day, 5 days a week Each grooming takes 1 5 labor hours Day Care: The Day Care can 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: Loan for start-up costs-monthly payment of $420; in effect immediately, limited cash and loan funding used angel investers Modest monthly draw of $600 a month for first year, should be divided evenly amoung the services (grooming, day care, boardi MILESTONE 1 -Company Profile XYZ Corporation Compnay Name Location Vision Mission ACC202-MANAGERIAL ACCOUNTING Par 7-3 8 XYZ Corporation 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 Labor Direct Materia Overhead Period Variable Fixed Item/Cost Groomer Day care attendant Receptionist Kennel attendant Food and water bowls Depreciation on kennels Rent Utilties and insurance Grooming tub 48" Depreciation on heating system Clippers Shampoo (Crystal Clear: five-gallon pail) Towels Scissors (7-inch straight, ear & nose) Toys (used in day care only) Cleaning products (used throughout) Dryer ACC202 MANAGERIAL ACCOUNTING XYZ Corporation 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 Variable Costs Item Groomer Rent Fixed Costs Shampoo Clipper(s) Bowls Towels Scissors 1.37 0.72 5.83 1.01 30.95 20.00 28.57 3.95 Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw 2.36 200.00 2,367.91 Total Variable Costs 9.97 Total Fixed Costs Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hou work days for kennel attendant. DAY CARE Item Day care attendant Bowls Towels Variable Costs Item Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Fixed Costs 2.88 0.27 0.10 1.40 232.14 150.00 l Toys 29.64 15.59 16.78 200.00 858.44 Total Variable Costs Total Fixed Costs Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant BOARDING Item Kennel attendant Bowls Towels Variable Costs Item Fixed Costs Depreciation on kennels Rent Loan Utilities and insurance Depreciation on heating system 80.00 386.90 250.00 0.86 0.87 49.40 25.98 29.55 200.00 1,378.97 Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Variable Costs 7.35 Total Fixed Costs ACC202- MANAGERIAL ACCOUNTING Managerial Accounting INSTRUCTIONS FOR MILESTONE 1 (Due Week 2) IMPORTANT NOTE Make sure to completely review the Rubric for Milestone 1 Use the data from this Milestone and begin working on your tinal presentation due in Milestone (week 7) SALARY & HIRING DATA Groomer (Alison)- $12.00 an hour, 40 hours a week Day Care Attendant (Beverly!- $9.00 per hour, based on need Receptionist (Cathie)- $8 50 per hour, 30 hours a week Kennel Attendant (Ben $1150 per hour, hased on need OTHER COST DATA Grooming Dog Grooming Arm $300 Grooming Table-$900 Grooming Tub-$2,800 Clippers -$136.99: can be used for 100 grooms Shampoo-$103 96 per 5-gallon pail: can be used far 100 grooms Salon Tuff Capri Mobile Carry Cart $90 Scissors (7 inch straight) $194.99, used for 200 grooms Scissors (ear and nose)-$7 49, used for 200 grooms Day Care: Fencing for Day Care area $1.249 Fencing Installation - $1,000 Toys $3.29 per 6 pack; one toy will last far two dogs in day care per day Rubberized Flooring for Day Care $3,800 Boarding: 12 Kennels; Depreciation is $80 per month General: Food & Water bowls 53.59 per unit Day Care - two bowls last for every 75 dogs that attend daycare Boarding - two bowls last for every 100 dogs boarded, two bowls per kennel Grooming-each bowl lasts for 20 grooms and you need 4 bowls at all times Towels - $34.99 per 12 pack Day Care - 12 towels for every 25 dogs Boarding 12 towels for every 40 dogs Grooming- 2 towels for every groorn per day Heating System - $10,000; Depreciation is $83 per month; Allocate based on square footage Rent -5650 per month; Allocate based on square footage Utilities/insurance $600 per month; Allocate based on square footage Cage Bank-$2,200 per set of 5 Dryer-$1,250 Cleaning Products Odoban $14.55 per gallon; Each area wil dilute 1 oz to 1 gallon of water: Allocate based on square footage Simple Green-$15 66 per galion; Each area will dilute 1 oz to 1 gallon of water; Allocate based on square footage Managerial Accounting INSTRUCTIONS FOR MILESTONE 1 (Due Week 2) IMPORTANT NOTE Make sure to completely review the Rubric for Milestone 1 Use the data from this Milestone and begin working on your final presentation due n Milestone & (Week 7) ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs): GENERAL Yau plan to open a pet services business that will otfe dog groumirg, day care and boarding COMPANY PROFILE TAB Determine a company name Be creative i. EInspiring Dog Carey Pick a location le. "Chicago" Define your cumpany's visian and mission for how your business will add value to the sommunity COST CLASSIFICATION ccurately classify all of your costs (direct material, d rect labor, manutacturing cverhead, 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 Grooming The Groomer can groom 5 dogs a day, 5 days a week Each grooming takes 1 5 labor hours Day Care: The Day Care can 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: Loan for start-up costs-monthly payment of $420; in effect immediately, limited cash and loan funding used angel investers Modest monthly draw of $600 a month for first year, should be divided evenly amoung the services (grooming, day care, boardi MILESTONE 1 -Company Profile XYZ Corporation Compnay Name Location Vision Mission ACC202-MANAGERIAL ACCOUNTING Par 7-3 8 XYZ Corporation 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 Labor Direct Materia Overhead Period Variable Fixed Item/Cost Groomer Day care attendant Receptionist Kennel attendant Food and water bowls Depreciation on kennels Rent Utilties and insurance Grooming tub 48" Depreciation on heating system Clippers Shampoo (Crystal Clear: five-gallon pail) Towels Scissors (7-inch straight, ear & nose) Toys (used in day care only) Cleaning products (used throughout) Dryer ACC202 MANAGERIAL ACCOUNTING XYZ Corporation 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 Variable Costs Item Groomer Rent Fixed Costs Shampoo Clipper(s) Bowls Towels Scissors 1.37 0.72 5.83 1.01 30.95 20.00 28.57 3.95 Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw 2.36 200.00 2,367.91 Total Variable Costs 9.97 Total Fixed Costs Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hou work days for kennel attendant. DAY CARE Item Day care attendant Bowls Towels Variable Costs Item Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Fixed Costs 2.88 0.27 0.10 1.40 232.14 150.00 l Toys 29.64 15.59 16.78 200.00 858.44 Total Variable Costs Total Fixed Costs Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant BOARDING Item Kennel attendant Bowls Towels Variable Costs Item Fixed Costs Depreciation on kennels Rent Loan Utilities and insurance Depreciation on heating system 80.00 386.90 250.00 0.86 0.87 49.40 25.98 29.55 200.00 1,378.97 Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Variable Costs 7.35 Total Fixed Costs ACC202- MANAGERIAL ACCOUNTING