Please follow Milestone 1 for this assignment. Thank you.

6 MILESTONE 2 (Due in Module 4) MILESTONE 3 (Due in Module 5) MILESTONE 1 (Due in Module 2) 7 9 10 Instructions Milestone 2 12 1. .5 Contribution Margin COGM Schedule Name Location Vision Mission Choose a price range and calculate Create a Cost of Goods Manufactured Sched Grooming Day Care Bcarding 2. 2. 2. Break-Even Analysis Identify the following Create an Income Statement Revenue will be provided end of week 4 Calculate the break-even units Direct Materials Diret Labor Manufacturing Overhead Period Costs Variable & Fixed Costs Grooming Day Care Boarding Calculate the break-even for target profits 3. Grooming Day Care Boarding 3. Calculate for the Grooming line Calculate the Variable & Fixed Costs for Direct Labor Time Variance Direct Labor Rate Variance Direct Materials Efficiency Variance Grooming Day Care Boarding Direct Materials Price Variance Classifi instructions - Milestone 1 Instructions . 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 in Milestone 4 (Week 7) ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs) GENERAL You plan to open a pet services business that will offer dog grooming, day care and boarding COMPANY PROFILE TAB Determine a company name. Be creative (e.g. Inspiring Dog Care") Pick a location (e.g. "Chicago") Define your company's vision and mission for how your business will add value to the community COST CLASSIFICATION Accurately classify all of your costs (direct material, direct labor, manufacturing overhead, 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 smali 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 investors Modest monthly draw of $600 a month for first year, should be divided evenly amoung the services (grooming day care, boardi 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 in Milestone 4 (Week 7) SALARY & HIRING DATA Groomer (Allison) $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) $11.50 per hour, based 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 for 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 for 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 $3.59 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 groom per day Heating System-$10,000, Depreciation is $83 per month, Allocate based on square footage Rent $650 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 -$1455 per gallon; Each area wil dilute 1 oz to 1 gallon of water, Allocate based on square footage Simple Green $15.66 per gallon; Each area ill dilute 1 oz to 1 gallon of water, Allocate based on square footage MILESTONE 1 - Company Profile Compnay Name Location XYZ Corporation Vision Mission ACC202 - MANAGERIAL ACCOUNTING 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 Material Direct Labor Overhead Fixed Item/Cost Period Costs Variable 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 Fixed Costs Shampoo Clipper(s) Bowls Towels Scissors Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw 1.37 30.95 20.00 28.57 3.95 2.08 2.36 200.00 2,367.91 5.83 1.01 Total Variable Costs Total Fixed Costs 9.97 Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attend DAY CARE Item Variable Costs Fixed Costs tem Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw 2.88 0.27 0.10 232.14 150.00 Day care attendant Toys Bowls Towels 29.64 15.59 16.78 200.00 858.44 Total Fixed Costs Total Variable Costs Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant BOARDING Fixed Costs Variable Costs Item tem 80.00 386.90 250.00 Depreciation on kennels Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odobar Cleaning Products: Simple Green Draw Kennel attendant Bowls Towels 0.86 0.87 49.40 25.98 29.55 200.00 1,378.97 Total Fixed Costs Total Variable Costs 7.35