Submit a detailed report for McDonald's to your potential investors and other stakeholders to explain and defend your costing strategies and to share your business's performance to date.

1. Financial Statements: Using the information in the Milestone Two Market Research Data Appendix, assess your financial performance to date.
   1. Statement of Cost of Goods Sold: Share the statement of cost of goods sold and logically interpret the business's performance against the provided benchmarks.
   2. Income Statement: Share the income statement and logically interpret the business's performance against the provided benchmarks.
   3. Variances: Illustrate all variances for the direct labor time and the materials price.
   4. Significance of Variances: Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning.

MILESTONE TWO MARKET RESEARCH INFO:

E17 : fx ***Given : Actual Costs and Revenue Data Appendix A B C D E F G H J K 1 2 Milestone Three - Income Statement 3 4 5 Revenue: 6 Collars 5 13,440 7 Leashes 11,960 a Harnesses 13,200 $13,440 + 511,950+s 13,200 = 5 33,500 9 10 Total Revenue: $ 35,500 3 33,500- $28,258 =3 10, 342 11 Cost of goods sold 28,258 12 Gross profit 5 10,342 13 14 Expenses: 15 General and administrative salaries 5 1,950 5 1,950 + S 200 + 150 = 5 2,300 *\"Given : Actual Costs and Revenue Data Appendix 16 Office supplies 200 M"Given : Actual Costs and Revenue Data Appendix 17 Otherbusiness equipment 150 I"\"Given .lctual Costs and Revenue Data Appendix 18 I 19 Total Expenses 5 1,300.00 20 21 Net Income/Loss $ 8,042.00 3 10, 342 - S 2, 300 = 8042 22 23 24 26 27 28 29 General LO Callbri ZY Format as Table v Tax Delete v V v Sort & Paste BIUV MVA $ ~ % " Cell Styles v Format v Filter Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off? J38 + X V fx A B C D E F G H K L M N O P Q 1 Milestone Three - Statement of Cost of Goods Sold -WN 6 Beginning Work in Process Inventory 7 Direct Materials: Materials: Beginning Add: Purchases for month of January $ 20,000 *** Amount Given: Actual Costs and Revenue Data Appendix 11 Materials available for use 20,000 12 Deduct: Ending materials 1,000 14 Materials Used 16,000 ***Materials Available - Ending Materials 15 Direct Labor 8,493 *** Amount Given : Actual Costs and Revenue Data Appendix 16 Overhead 3,765 *** Amount Given: Actual Costs and Revenue Data Appendix 18 Total Costs $ 28,258 ***Materials Used + Direct Labor + Overhead 19 20 Deduct: Ending Work in Process Inventory 0 *** Amount Given: Actual Costs and Revenue Data Appendix 21 22 Cost of Goods Sold 28258 ***Total 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39J29 X V fx A B C D E F G H K L Milestone Three - Variance Analysis w Data for Variance Analysis: Budgeted Budgeted Actual Actual (Standard) (Standard) Hours/Qty Rate Hours/Qty Rate Labor 160 $ 16.00 180 $ 16.50 10 11 Materials 500 $ 9.10 560 $ 10.00 12 13 14 15 Variances for Collar Sales Favorable/ 16 Variance Unfavorable 17 Direct Labor Time Variance 18 (Actual Hours - Standard Hours) x Standard Rate $ 320.00 Unfavorable 19 20 Direct Labor Rate Variance 21 Actual Rate - Standard Rate) x Actual Hours S 90.00 Unfavorable 22 23 Direct Materials Quantity/Efficiency Variance 24 (Actual Quantity - Standard Quantity) x Standard Price S 546.00 Unfavorable 25 26 Direct Materials Price Variance 27 (Actual Price - Standard Price) x Actual Quantity 504.00 Unfavorable 28 29 30