Milestone Three-Statement of Cost of Goods Sold Beginning Work in Process Inventory Direct Materials: Materials: Beginning Add: Purchases for month of January Materials available for use Deduct: Ending materials Materials Used Direct Labor Overhead Total Costs Deduct: Ending Work in Process Inventory Cost of Goods Sold Milestone Three - Variance Analysis Milestone Two - Break-Even Analysis Actual Actual Budgeted Budgeted (Standard (Standard Hours/Qt Rate , Hours/Qt Rate COLLARS LEASHES HARNESSES Sales Price $ 24.00 $ 22.00 $ 35.00 Fixed Costs $ 4,028 $ 4,028 4,201 y Contribution Margin $ 14.90 $ 9.90 $ 20.40 Labor 160 $ 16.00 180 $ 16.50 Break-Even Units (round up) 271.00 407.00 206.00 $ 20,000 20,000 Materials 500 $ 9.10 560 $ 10.00 Target Profit 4,000 16,000 Break-Even Units (round up) 291.00 $ 300.00 $ 400.00 $ 500.00 231.00 448.00 8,493 Variances for Collar Sales 3,765 Variance Favorable/ Unfavorab le Target Profit Break-Even Units (round up) 304.00 $ 500.00 $ 600.00 650.00 468.00 238.00 28,258 (Actual Hours - Standard Hours) x $ $320.00 Unfavorable 0 Direct Labor Rate Variance (Actual Rate - Standard Rate) x Act $ 90.00 Unfavorable Milestone Two - Contribution Margin Analysis $ 28,258 Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quant $546.00 Untavorable COLLARS LEASHES HARNESSES Direct Materials Price Variance Sales Price per Unit $ (Actual Price - Standard Price) x Act $504.00 Unfavorable Variable Cost per Unit 24.00 9.10 $ 22.00 $ 35.00 12.10 14.60 Contribution Margin $ 14.90 $ 9.90 $ 20.40