Milestone Three - Income Statement Revenue: Collars Leashes Harnesses 0 Total Revenue: 1 Cost of goods sold 2 Gross profit 3 4 Expenses: 5 General and administrative salaries 1,950 .6 Office supplies 200 Other business equipment 150 8 9 Total Expenses $ 2,300.00 10 1 Net Income/Loss 2 13 4 6snhu snhu ACC 202 Milestone Three: Actual Costs and Revenue Data Appendix Variance At the end of the month, you find that the labor and materials spent on manufacturing collars was At the end of the first month of opening your business, you calculate the actual operating costs of the different from what you estimated: 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. . The collar maker had to work nine hours a day instead of eight due to an increased demand for collars. For your statement of cost of goods sold, use the following data regarding the actual costs incurred by Because of the increased demand, the hourly rate you paid your employee for making the the business over the past month: collars increased to $16.50. An increase in the cost of raw material led the direct material cost per collar to increase to $10. . Materials purchased: $20,000 . However, you also made and sold 60 more collars than you expected to sell in the month. o Consumed 80% of the purchased materials Direct labor: $8,493 You now need to determine the variance in the materials and labor cost from what you estimated in Overhead costs: $3,765 Milestone Two based on the market research data. 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. Established Sales Price Number of Items Sold per Day Collars $20 33 $24 28 $28 23 Leashes $22 28 $26 23 $30 18 Harnesses $25 25 $30 22 $35 20 The other costs incurred by the business include: General and administrative salaries o Receptionist: $1,950 Office supplies: $200 Other business equipment: $150