Statement of Cost, Income statement and anything blank that is highlighted in blue needs to be answered.

Royalty Pet Groomers 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 Shampoo Clipper(s) Bowls Towels Scissors $ Variable Costs 1.04 1.37 0.72 5.83 1.01 Item Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Fixed Costs 2,080.01 30.95 20.00 28.57 3.95 2.08 2.36 200.00 Total Variable Costs $ 9.97 Total Fixed Costs $ 2,367.92 Item 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 attendant. DAY CARE Variable costs Item Fixed Costs Day care attendant $ 2.88 Rent S 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance 214.29 Towels 1.40 Depreciation on heating system 29.64 Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 Draw 200.00 Total Variable Costs $ 4.65 Total Fixed Costs $ 858.44 $ Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Item Variable Costs Item Kennel attendant $ 5.62 Depreciation on kennels Bowls 0.86 Rent Towels 0.87 Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Variable Costs 7.35 Total Fixed Costs Fixed Costs 80.00 386.90 250.00 357.15 49.40 25.98 29.55 200.00 S $ 1,378.97 DAY CARE BOARDING GROOMING Sales Price $ 25.00 S 30.00 $ 35.00 Fixed Costs $ 204 $ 159 $ 75 Contribution Margin $ 20.35 $ 22.65 $ 25.03 Break-even Units (round up) 10.00 7.00 3.00 Target Profit $ 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) 30.00 33.00 43.00 Target Profit $ 667.00 S 909.00 S 1,500.00 Break-even Units (round up) 43.00 47.00 63.00 Southern New Hampshire University ACC 202 Milestone Three Income Statement Revenue Information In order to complete Milestone Three, you will need the following income statement revenue information. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Income for January-actual activity based on price levels: For example, if you chose a grooming price of $25 per groom, the actual grooms in January were 4 per day assuming a 30-day month. If you chose... Grooming price $25 Grooming price $30 Grooming price $35 Daycare price $18 Daycare price $20 Daycare price $25 Kennel price $25 Kennel price $28 Kennel price $30 The actual # of grooms/daycare/kennel 4 grooms per day 3 grooms per day 2 grooms per day 22 dogs per day 12 dogs per day 9 dogs per day 12 dogs per day 9 dogs per day 6 dogs per day INSTRUCTIONS: The following are the actual numbers for January: Materials Purchased $5,000 of Materials Consumed 40% of those purchased materials Direct Labor Direct Labor was $6,240 Overhead Overhead was $2,800 Royalty Pet Groomers Statement of Cost of Services For the Month Ended January 31, XXXX 0 0 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 Service Costs INTO Deduct: Ending Work in Process Inventory Cost of Services INSTRUCTIONS: Complete the Statement in proper form Revenue will be provided in an Announcement at the end of Module 4 (based on actual number of services for your pricing levels) Additional Information necessary to complete the Income Statement: General & Administrative Salaries paid = $1,200 Advertising = $100 Cleaning Products = $120 Depreciation = $83 Rent = $650 Loan = $420 Utilities & Insurance = $600 Income Statement For the Month Ended January 31, XXXX Revenue: Grooming Day Care Boarding Tota Revenue Cost of Services * Gross Profit $ $ Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities and Insurance Total Expenses $ Net Income / Loss $ Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain DATA FOR VARIANCE ANALYSIS: Actual Standard Rate Rate Standard Hours / Qty 150 $ 1,000 $ Actual Hours / Qty 180 $ 1,200 $ 12.00 Grooming Labor Grooming Materials 11.50 2.00 3.00 Favorable/ Unfavorable Variance Groomer Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ Groomer Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price $ Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity S Royalty Pet Groomers 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 Shampoo Clipper(s) Bowls Towels Scissors $ Variable Costs 1.04 1.37 0.72 5.83 1.01 Item Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Fixed Costs 2,080.01 30.95 20.00 28.57 3.95 2.08 2.36 200.00 Total Variable Costs $ 9.97 Total Fixed Costs $ 2,367.92 Item 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 attendant. DAY CARE Variable costs Item Fixed Costs Day care attendant $ 2.88 Rent S 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance 214.29 Towels 1.40 Depreciation on heating system 29.64 Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 Draw 200.00 Total Variable Costs $ 4.65 Total Fixed Costs $ 858.44 $ Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Item Variable Costs Item Kennel attendant $ 5.62 Depreciation on kennels Bowls 0.86 Rent Towels 0.87 Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Variable Costs 7.35 Total Fixed Costs Fixed Costs 80.00 386.90 250.00 357.15 49.40 25.98 29.55 200.00 S $ 1,378.97 DAY CARE BOARDING GROOMING Sales Price $ 25.00 S 30.00 $ 35.00 Fixed Costs $ 204 $ 159 $ 75 Contribution Margin $ 20.35 $ 22.65 $ 25.03 Break-even Units (round up) 10.00 7.00 3.00 Target Profit $ 417.00 $ 583.00 $ 1,000.00 Break-even Units (round up) 30.00 33.00 43.00 Target Profit $ 667.00 S 909.00 S 1,500.00 Break-even Units (round up) 43.00 47.00 63.00 Southern New Hampshire University ACC 202 Milestone Three Income Statement Revenue Information In order to complete Milestone Three, you will need the following income statement revenue information. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Income for January-actual activity based on price levels: For example, if you chose a grooming price of $25 per groom, the actual grooms in January were 4 per day assuming a 30-day month. If you chose... Grooming price $25 Grooming price $30 Grooming price $35 Daycare price $18 Daycare price $20 Daycare price $25 Kennel price $25 Kennel price $28 Kennel price $30 The actual # of grooms/daycare/kennel 4 grooms per day 3 grooms per day 2 grooms per day 22 dogs per day 12 dogs per day 9 dogs per day 12 dogs per day 9 dogs per day 6 dogs per day INSTRUCTIONS: The following are the actual numbers for January: Materials Purchased $5,000 of Materials Consumed 40% of those purchased materials Direct Labor Direct Labor was $6,240 Overhead Overhead was $2,800 Royalty Pet Groomers Statement of Cost of Services For the Month Ended January 31, XXXX 0 0 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 Service Costs INTO Deduct: Ending Work in Process Inventory Cost of Services INSTRUCTIONS: Complete the Statement in proper form Revenue will be provided in an Announcement at the end of Module 4 (based on actual number of services for your pricing levels) Additional Information necessary to complete the Income Statement: General & Administrative Salaries paid = $1,200 Advertising = $100 Cleaning Products = $120 Depreciation = $83 Rent = $650 Loan = $420 Utilities & Insurance = $600 Income Statement For the Month Ended January 31, XXXX Revenue: Grooming Day Care Boarding Tota Revenue Cost of Services * Gross Profit $ $ Expenses: G&A Salaries Advertising Cleaning Products Depreciation Rent Loan Utilities and Insurance Total Expenses $ Net Income / Loss $ Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain DATA FOR VARIANCE ANALYSIS: Actual Standard Rate Rate Standard Hours / Qty 150 $ 1,000 $ Actual Hours / Qty 180 $ 1,200 $ 12.00 Grooming Labor Grooming Materials 11.50 2.00 3.00 Favorable/ Unfavorable Variance Groomer Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ Groomer Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price $ Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity S