please help me solve this question, I need to solve cost classification and variable and fixed cost. The instructions are posted below under overview, scenario and prompt. please show me how you got the answer so I can better understand how to complete the work. Thank you.
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 small business and apply managerial accounting principles to evaluate and manage costs related to your services within a costing system. In the first 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 complete the first two tabs, "Cost Classification" and "Variable and Fixed Costs," in the Project Workbook Spreadsheet. 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 - Rent: $750 per month; allocate based on square footage - High-tensile strength nylon webbing-S12 per yard of webbing - 3 collars per yard of webbing - 2 leashes per yard of webbing - 2 hamesses per yard of webbing - Polyesterinylon ribbons - $9 per yard of ribbon - 3 collars per yard of ribbon - 2 leashes per yard of ribbon - 2 hamesses per yard of ribbon - Buckles made of cast hardware- $0.50 per buckle o 4 buckles used per collar - 3 buckles used per leash 0 buckles used per harness - 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) - Utilities and insurance: $600 per month; allocate based on square footage - Scissors, thread, cording: $1,200 - Price tags: $250 for 2,500($0.10cach) - Office supplies: $2,400 or $200 per month Milestone One - Cost Classification INSTRUCTIONS: Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs. The Fixed and Variable cost elassifications have been provided for you. Cost Classification Variable and Fixed Costs Contribu Milestene One - Variable and Fixed Costs Collars Item Hagh-lensile serengih nyloe webbing Polyesterinylon nibbons Buckles made of cast hardware Price tags Variable Cest/item 54,00 Item Collar maker's salary (mouthly) Deprociation on sewing machincs Rent Utilities and insurance Scissoes, theread, and coeding Laan payment Salary to self Fixed Cests 52,773,33 Tetal Variable Costs per Cellar Tetal Fised Cests Leashes Itens Variable Cest/Item High-lensile strengh nyloe webbint Polyesterinylon ribbons Buckes made of cast hardware Price tags Item Fixed Cents Leash maker's salary (monthly) Deprcciation on sewing machines Rent Utilitics and insurance Scissors, thecad, and coeding Laan payment Salary to self Tetal Fived Cests Harnessts Irete Variable Costiltem High-tensile strengh nyloe wcbbing Polyesterinylon ribbons Buckes made of east hartware Price tags Itra Harness maker's salary Deprcciation ce sewing machines Renl Utilitics and insurance Sciksers, thread, and coeding Loan Salary to setf Fixed Casts Tetal Variable Costs per Harness Tetal Fised Cests
