Use the given operational costs in the Milestone One Operational Costs Data Appendix document to complete the first two tabs, Cost Classification and Variable and Fixed Costs, in the Project Workbook. Specifically, you must address the following rubric criteria: Cost Classification. Accurately classify all your costs in the Cost Classification tab of your workbook. Identify direct material, direct labor, overhead, and period costs. (Note: Fixed and variable costs have been classified for you.) Variable and Fixed Costs. Complete the Variable and Fixed Costs tab of your workbook. (Note: Some costs are provided for you. Fill in only the missing costs.) Determine your total variable cost per unit and the total fixed costs for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table. 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 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 O 2 harnesses per yard of webbing Polyester/nylon ribbons-$9 per yard of ribbon . . . . 0 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 . . 3 collars per yard of ribbon 2 leashes per yard of ribbon O 2 harnesses per yard of ribbon Buckles made of cast hardware-$0.50 per buckle . 0 Loan payment of $550 per month 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. Salary - Collar maker Salary Leash maker Salary Harness maker .............. Salary Receptionist ****** High-tensile strength nylon webbing - Polyester/nylon ribbons --------------- Item/Cost Buckles made of cast hardware -------------... *************. Depreciation on sewing machines Rent ... Utilities and insurance ------------------------------- Scissors, thread, and cording ************** Price tags ......... Office supplies ----------- ********** Oter business equipment Loan payment ... Salary to self Direct Material Direct Labor Overhead Period Costs Fixed X X X X X X Variable X X X xxx X X X Milestone One - Variable and Fixed Costs Collars Item High-tensile strength nylon webbing Polyester/nylon ribbons Buckles made of cast hardware Price tags Total Variable Costs per Collar Leashes Item High-tensile strength nylon webbing Polyester/nylon ribbons Buckles made of cast hardware Price tags Total Variable Costs per Leash Harnesses Item Variable Cost/Item $ 4.00 Variable Cost/Item Variable Cost/Item Item Collar maker s salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fixed Costs Item Leash maker s salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fixed Costs Item $ $ is is $ Fixed Costs 2,773.33 183.33 166.67 Fixed Costs Fixed Costs Leashes Item High-tensile strength nylon webbing Polyester/nylon ribbons Buckles made of cast hardware Price tags Total Variable Costs per Leash Harnesses Item High-tensile strength nylon webbing Polyester/nylon ribbons Buckles made of cast hardware Price tags Total Variable Costs per Harness Variable Cost/Item Variable Cost/Item Item Leash maker s salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fixed Costs Item Harness maker s salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Salary to self Total Fixed Costs Fixed Costs Fixed Costs is