Overview Successful entrepreneurs understand all aspects of business, especially costs and costing systems. In the course project, you will assume the role of the owner of a smali business and apply managerial accounting principles to evaluate and manage costs related to your services within a costing system. In the frst milestone of the project. you will determine and classify the costs necessary for opening your business. Scenario You plan to open a business manufacturing collars, leashes, and harnesses for pets. To begin, you will manufacture these in a standard style and size with plans to expand your range over the year. In a few weeks. you will present your company s financial strategy to some key investors. To begin creating your strategy, you need to consider and record all the costs associated with operating your business. You have decided to use the job order costing system. Prompt Use the given operational costs in the Milestone One Operational Costs Data Appendix Word Document to cormplete the first two tabs. "Cost Classification" and "Variable and Fiked Costs," in the Project Workbook Soreadshect. Specifically, you must address the following rubric criteria: - Cost Classification. Accurately ciassify all your costs in the "Cost Cissification tab of your workbook. - Identify direct material, direct Gibor, overhead, and period costs. (Note Fixed and variable costs have been classified for you) - Variable and Fixed Costs. Complete the "Variable and Fixed Costs" tab of your workbook (Note: Some costs are provided for vou, Fill in only the missing costs.) - Determine your total variable cost per unit and the total fixed costs for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table. Guidelines for Submission Submit the Project Workbook with the "Cost Clsssification" and "Fixed and Variable Costs" tabs completed. This file should be completed and submitted using Microsoft Excel You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning. you have estimates for the various operating costs for your business. The total square footage for the sewing rooms is 1,500 square feet broken into three areas (500 square feet each). You have taken out a loan for start-up costs, and the monthly payment is $550; it goes into effect immediately and should be accounted for in your costs. You will also collect a modest salary for the first year of $500 per month; remember to divide evenly among the services. Salary and Hiring Data [ One collar maker, who will be paid $16.00 per hour and work 40 hours per week ( One leash maker, who will be paid $16.00 per hour and work 40 hours per week. [] One harness maker, who will be paid $17.00 per hour and work 40 hours per week [ One receptionist, who will be paid $15.00 per hour and work 30 hours per week Other Costs 1] Rent: $750 per month; allocate based on square footage [. High-tensile strength nylon webbing $12 per yard of webbing - 3 collars per yard of webbing - 2 leashes per yard of webbing o 2 harnesses per yard of webbing [ Polyesterylon ribbons $9 per yard of ribbon 3 collars per yard of ribbon - 2 leashes per yard of ribbon o 2 harnesses per yard of ribbon D Buckles made of cast hardware $0.50 per buckle o 4 buckles used per collar o 3 buckles used per leash 08 buckles used per harness 1. 3 industrial sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5-year life, zero salvage value) 0 Utilities and insurance: $600 per month; allocate based on square footage - Scissors, thread, cording: $1,200 D Price tags: $250 for 2,500 ( $0.10 each) Office supplies: $2,400 or $200 per month Other business equipment: $2,000 Loan payment of $550 per month Putting an x in the approgiriate spot, classify the costs ast Direct Material, Direct Labor, Cverbead, or Period Costs. The fired and Variable cost classilications have been provided for you. Overview Successful entrepreneurs understand all aspects of business, especially costs and costing systems. In the course project, you will assume the role of the owner of a smali business and apply managerial accounting principles to evaluate and manage costs related to your services within a costing system. In the frst milestone of the project. you will determine and classify the costs necessary for opening your business. Scenario You plan to open a business manufacturing collars, leashes, and harnesses for pets. To begin, you will manufacture these in a standard style and size with plans to expand your range over the year. In a few weeks. you will present your company s financial strategy to some key investors. To begin creating your strategy, you need to consider and record all the costs associated with operating your business. You have decided to use the job order costing system. Prompt Use the given operational costs in the Milestone One Operational Costs Data Appendix Word Document to cormplete the first two tabs. "Cost Classification" and "Variable and Fiked Costs," in the Project Workbook Soreadshect. Specifically, you must address the following rubric criteria: - Cost Classification. Accurately ciassify all your costs in the "Cost Cissification tab of your workbook. - Identify direct material, direct Gibor, overhead, and period costs. (Note Fixed and variable costs have been classified for you) - Variable and Fixed Costs. Complete the "Variable and Fixed Costs" tab of your workbook (Note: Some costs are provided for vou, Fill in only the missing costs.) - Determine your total variable cost per unit and the total fixed costs for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table. Guidelines for Submission Submit the Project Workbook with the "Cost Clsssification" and "Fixed and Variable Costs" tabs completed. This file should be completed and submitted using Microsoft Excel You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning. you have estimates for the various operating costs for your business. The total square footage for the sewing rooms is 1,500 square feet broken into three areas (500 square feet each). You have taken out a loan for start-up costs, and the monthly payment is $550; it goes into effect immediately and should be accounted for in your costs. You will also collect a modest salary for the first year of $500 per month; remember to divide evenly among the services. Salary and Hiring Data [ One collar maker, who will be paid $16.00 per hour and work 40 hours per week ( One leash maker, who will be paid $16.00 per hour and work 40 hours per week. [] One harness maker, who will be paid $17.00 per hour and work 40 hours per week [ One receptionist, who will be paid $15.00 per hour and work 30 hours per week Other Costs 1] Rent: $750 per month; allocate based on square footage [. High-tensile strength nylon webbing $12 per yard of webbing - 3 collars per yard of webbing - 2 leashes per yard of webbing o 2 harnesses per yard of webbing [ Polyesterylon ribbons $9 per yard of ribbon 3 collars per yard of ribbon - 2 leashes per yard of ribbon o 2 harnesses per yard of ribbon D Buckles made of cast hardware $0.50 per buckle o 4 buckles used per collar o 3 buckles used per leash 08 buckles used per harness 1. 3 industrial sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5-year life, zero salvage value) 0 Utilities and insurance: $600 per month; allocate based on square footage - Scissors, thread, cording: $1,200 D Price tags: $250 for 2,500 ( $0.10 each) Office supplies: $2,400 or $200 per month Other business equipment: $2,000 Loan payment of $550 per month Putting an x in the approgiriate spot, classify the costs ast Direct Material, Direct Labor, Cverbead, or Period Costs. The fired and Variable cost classilications have been provided for you