This is the data appendix for the workbook
Cost Classification
Contribution Margin Analysis
Break-Even Analysis
COGS
Income Statement
Variances
ACC 202 Milestone One: Operational Costs Data Appendix 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 . . . . O O O . O O O . Other Costs 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 2 harnesses per yard of webbing Polyesterylon ribbons-$9 per yard of ribbon 3 collars per yard of webbing 2 leashes per yard of webbing 2 harnesses per yard of webbing Buckles made of cast hardware-$0.50 per buckle 4 buckles used per collar 3 buckles used per leash 8 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) Utilities and insurance: $600 per month; allocate based on square footage Scissors, thread, cording: $1,200 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 O O o . . . . Salary drawn of $500 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 classifications have been provided for you. Direct Material Direct Labor Item/Cost Overhead Period Costs Fixed Variable X Salary - Collar maker Salary - Leash maker Salary - Harness maker Salary - Receptionist High-tensile strength nylon webbing Polyesterylon ribbons Buckles made of cast hardware Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording x Price tags Office supplies Oter business equipment Loan payment Salary to self Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit Contribution Margin Milestone Two - Break-Even Ahalysis COLLARS LEASHES HARNESSES Sales Price $ $ $ Fixed Costs $ Contribution Margin $ $ $ Break-Even Units (round up) Target Profit $ 300.00 $ 400.00 $ 500.00 Break-Even Units (round up) Target Profit $ 500.00 $ 600.00 $ 650.00 Break-Even Units (round up) Milestone Three - Statement of Cost of Goods Sold 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 Costs Deduct: Ending Work in Process Inventory 0 Cost of Goods Sold Milestone Three - Income Statement $ Revenue: Collars Leashes Harnesses $ Total Revenue: Cost of goods sold Gross profit $ $ Expenses: General and administrative salaries Depreciation Rent Utilities and insurance Scissors, thread, and cording Loan Total Expenses $ $ Net Income/Loss $ $ Milestone Three - Variance Analysis Data for Variance Analysis: Budgeted (Standard) Hours/Qty Budgeted (Standard) Rate Actual Hours/Qty Actual Rate Labor Materials Variances for Collar Sales Favorable/ Unfavorable Variance Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ 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) Actual Quantity $ ACC 202 Milestone One: Operational Costs Data Appendix 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 . . . . O O O . O O O . Other Costs 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 2 harnesses per yard of webbing Polyesterylon ribbons-$9 per yard of ribbon 3 collars per yard of webbing 2 leashes per yard of webbing 2 harnesses per yard of webbing Buckles made of cast hardware-$0.50 per buckle 4 buckles used per collar 3 buckles used per leash 8 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) Utilities and insurance: $600 per month; allocate based on square footage Scissors, thread, cording: $1,200 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 O O o . . . . Salary drawn of $500 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 classifications have been provided for you. Direct Material Direct Labor Item/Cost Overhead Period Costs Fixed Variable X Salary - Collar maker Salary - Leash maker Salary - Harness maker Salary - Receptionist High-tensile strength nylon webbing Polyesterylon ribbons Buckles made of cast hardware Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording x Price tags Office supplies Oter business equipment Loan payment Salary to self Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit Contribution Margin Milestone Two - Break-Even Ahalysis COLLARS LEASHES HARNESSES Sales Price $ $ $ Fixed Costs $ Contribution Margin $ $ $ Break-Even Units (round up) Target Profit $ 300.00 $ 400.00 $ 500.00 Break-Even Units (round up) Target Profit $ 500.00 $ 600.00 $ 650.00 Break-Even Units (round up) Milestone Three - Statement of Cost of Goods Sold 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 Costs Deduct: Ending Work in Process Inventory 0 Cost of Goods Sold Milestone Three - Income Statement $ Revenue: Collars Leashes Harnesses $ Total Revenue: Cost of goods sold Gross profit $ $ Expenses: General and administrative salaries Depreciation Rent Utilities and insurance Scissors, thread, and cording Loan Total Expenses $ $ Net Income/Loss $ $ Milestone Three - Variance Analysis Data for Variance Analysis: Budgeted (Standard) Hours/Qty Budgeted (Standard) Rate Actual Hours/Qty Actual Rate Labor Materials Variances for Collar Sales Favorable/ Unfavorable Variance Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ 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) Actual Quantity $
