Milestone Two-Contribution Margin Analysis LEASHES COLLARS $ $ 20.000 23.00 Sales Price per Uni Variable Cost per Unit 9.10 Contribution Margin $ 10.90 12.10 $ 9.90 Milestone Three-Sement of Cost of Goods Sold HARNESSES Dok Pr . 25.00 14.00 $ 10.40 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 cared. You also notice and cocument 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 cruer the past month: . Materia's purchased: $20,000 Consumed 80% of the purchased materials Direct labor. $5,493 Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process we vern for the month. Use the folowing 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 Collars $20 Leashes $22 Harnesses $25 33 28 25 Number of Items Sold per Day The other costs incurred by the business include: ' General and administrative salaries Receptionist: $1,950 Office supplies: $200 Miltons Three-Income Stat BASTJ C Loiolas To Revenue Kast of ads sold Ade:Toler 21,300 for 32,300 1200 Meth 18730 D Saber Overstand 8433 132 G Off T Deduc: Cading Wert l Milestone Three Variance Analysis Other 11.200 12.530 12.500 3.002 $ 1,930 200 150 2,300.00 7,462 Number of Ant North Established Sal Items Sold par Day drp) Collar 520 33 $13,200 Leashes 522 23 $32.320 Hamee 535 25 $12.500 5453030 nota for Work Al Euced (Standa Hounty E S Hours Ony Te wwxx 5 3467 2553 Mad een 5 331 223 6 3033 Varian Other business equipment: $150 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 sight due to an increased demand for calars. Because of the increased demand, the hourly rate you paid your employee for making the collars increased to $16.50. An increase in the cast of raw material led the direct material cost per colar to increase to $10. However, you also made and sold 60 more colars than you expected to sell in the mont Hond Dac Labor Rabe V -Stand Date Qty Actual Cuantity Standard Standard Di Actual Price-Standard Pry F Unable V S 33333 . B 33333 Unable 54323 Unw.cable 24323 Unable 2