you must address:

• Statement of Cost of Goods Sold: Prepare the statement of cost of goods sold
• Income Statement: Use the given revenue data to prepare the Income Statement and calculate the net income. R
• Variance Analysis: Determine whether the variances are favorable or unfavorable, and show your work using calculations
  • Complete the data table for the variances by entering the budgeted (standard) and actual labor and material values. Remember to use the estimates for expected sales from:

• Determine the variances for direct labor and direct materials
• Evaluate the significance of the variances and mark them as favorable or unfavorable.

Information.

CHARTS.

Sales Price Fixed Costs Contribution Margin Break-Even Units (round up) Target Profit Break-Even Units (round up) Target Profit Break-Even Units (round up) COLLARS $4.493 $5,90 761,00 $300,00 812,00 $500,00 846,00 For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month: - Materials purchased: $20,000 o Consumed 80% of the purchased materials - Direct labor: $8,493 - Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process are zero for the month. Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you choose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation. For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 3320=660 per month. Beginning Work in Process Inventory Direct Materials: Materials: Beginning Add: Purchases for month of January Materials available for use Deduct: Ending materials Materials Used Direct Labor Overhead Total Costs Deduct: Ending Work in Process Inventory 0 Cost of Goods Sold Revenue: Collars Leashes Harnesses Total Revenue: Cost of goods sold Gross profit Expenses: General and administrative salaries Office supplies Other business equipment Total Expenses Net Income/Loss \begin{tabular}{ll} \hline$ & - \\ \hline & \\ \hline$ & - \\ \hline \end{tabular} Data for Variance Analysis: \begin{tabular}{|l|c|c|c|c|} \hline \multirow{2}{*}{ Labor } & \begin{tabular}{c} Budgeted \\ (Standard) \\ Hours/Qty \end{tabular} & \begin{tabular}{c} Budgeted \\ (Standard) \\ Rate \end{tabular} & \begin{tabular}{c} Actual \\ Hours/Qty \end{tabular} & \begin{tabular}{c} Actual \\ Rate \end{tabular} \\ \cline { 2 - 5 } Materials & & & & \\ \hline \end{tabular} Variances for Collar Sales 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) x Actual Quantity Sales Price Fixed Costs Contribution Margin Break-Even Units (round up) Target Profit Break-Even Units (round up) Target Profit Break-Even Units (round up) COLLARS $4.493 $5,90 761,00 $300,00 812,00 $500,00 846,00 For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month: - Materials purchased: $20,000 o Consumed 80% of the purchased materials - Direct labor: $8,493 - Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process are zero for the month. Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you choose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation. For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 3320=660 per month. Beginning Work in Process Inventory Direct Materials: Materials: Beginning Add: Purchases for month of January Materials available for use Deduct: Ending materials Materials Used Direct Labor Overhead Total Costs Deduct: Ending Work in Process Inventory 0 Cost of Goods Sold Revenue: Collars Leashes Harnesses Total Revenue: Cost of goods sold Gross profit Expenses: General and administrative salaries Office supplies Other business equipment Total Expenses Net Income/Loss \begin{tabular}{ll} \hline$ & - \\ \hline & \\ \hline$ & - \\ \hline \end{tabular} Data for Variance Analysis: \begin{tabular}{|l|c|c|c|c|} \hline \multirow{2}{*}{ Labor } & \begin{tabular}{c} Budgeted \\ (Standard) \\ Hours/Qty \end{tabular} & \begin{tabular}{c} Budgeted \\ (Standard) \\ Rate \end{tabular} & \begin{tabular}{c} Actual \\ Hours/Qty \end{tabular} & \begin{tabular}{c} Actual \\ Rate \end{tabular} \\ \cline { 2 - 5 } Materials & & & & \\ \hline \end{tabular} Variances for Collar Sales 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) x Actual Quantity