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 and leash maker who will be paid $16 per hour and work 40 hours per week one harness maker who will be paid $17 per hour and work 40 hours per week and one receptionist who will be paid $15 per hour and 30 hours per week

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

polyester/nylon ribbons $9 per yard of ribbon

3 collars per yard of ribbon

2 leashes per yard of ribbon

2 harnesses per yard of ribbon

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 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($0.10 each)

office supplies $2,400 or $200 per month

other business equipment $2,000

loan payment of $550 per month

salary drawn of $500 per month

Milestone one cost classification putting an x in the appropriate spot to classify the costs: Direct Materials Direct Labor Overhead or Period Costs

Salary collar maker

salary leash maker

salary harness maker

salary receptionist

high tensile strength nylon webbing

polyester nylon ribbons

buckles made of cast hardware

depreciation on sewing machines

rent

utilities and insurance

scissors thread and cording

price tags

office supplies

other business equipment

loan payment

salary to self

Variable and fixed costs

collars, leashes, and harness

item:

high tensile strength nylon webbing variable cost/item $4.00

polyester/nylon ribbons

buckles made of cast hardware

price tags.

total variable costs per collar

item:

collar makers salary(monthly)fixed costs $2773.33

depreciation on sewing machines

rent

utilities and insurance

scissor thread and cording

loan payment of $183.33

salary to self $166.67

total fixed costs