Southern New Hampshire University College of Continuing Education (COCE)
ACC202 - Managerial Accounting
MILESTONE 1 (Due in Module 2) MILESTONE 2 (Due in Module 4) MILESTONE 3 (Due in Module 5)
1. 1. 1.
Name Choose a price range and calculate: Create a Cost of Goods Manufactured Schedule Location Grooming Vision Day Care Mission Boarding
2. 2. 2.
Identify the following: Calculate the break-even units Create an Income Statement Direct Materials Grooming Revenue will be provided end of week 4 Diret Labor Day Care Manufacturing Overhead Boarding Period Costs Calculate the break-even for target profits
3. Grooming 3. Day Care
Calculate the Variable & Fixed Costs for: Boarding Calculate for the Grooming line: Grooming Direct Labor Time Variance Day Care Direct Labor Rate Variance Boarding Direct Materials Efficiency Variance
Direct Materials Price Variance
Company Profile
Variable & Fixed Costs
Cost Classification
Contribution Margin
Break-Even Analysis
COGM Schedule
Income Statement
Variances
Instructions Milestone 1 Instructions Milestone 2 Instructions Milestone 3
ACC202 - MANAGERIAL ACCOUNTING
%23VariableFixedCosts
%23InstructionsMilestone1
%23CompanyProfile
%23COGMSchedule
%23BreakevenAnalysis
%23CostClassification
%23'Instructions%20-%20Milestone%202'!InstructionsMilestone2
%23Variances
%23COGMSchedule
%23ContributionMargin
%23'Instructions%20-%20Milestone%203'!InstructionsMilestone3
Southern New Hampshire University College of Continuing Education (COCE)
ACC202 - Managerial Accounting
INSTRUCTIONS FOR MILESTONE 1 (Due Week 2)
IMPORTANT NOTE:
Make sure to completely review the Rubric for Milestone 1
Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7)
ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs):
GENERAL
You plan to open a pet services business that will offer dog grooming, day care and boarding
COMPANY PROFILE TAB
Determine a company name. Be creative (e.g. "Inspiring Dog Care") Pick a location (e.g. "Chicago") Define your company's vision and mission for how your business will add value to the community
COST CLASSIFICATION
Accurately classify all of your costs (direct material, direct labor, manufacturing overhead, period costs) Fixed & Variable cost designation is provided
VARIABLE & FIXED COSTS
Determine your per unit cost per dog for grooming, day care and boarding
OPERATIONAL & COST INFORMATION:
For simplicity, base all calculations using 30 days in each month
OPERATIONAL DATA
Grooming: The Groomer can groom 5 dogs a day, 5 days a week Each grooming takes 1.5 labor hours
Day Care: The Day Care can house 10 large dogs and 12 small dogs daily. Day Care is offered 6 days a week
Boarding: There are 12 kennels (single dog only). Boarding (kennel services) is offered every day
Facilities: The Grooming facility is 200 square feet The Boarding facility is 2,500 square feet The Day Care facility is 1,500 square feet
General: Loan for start-up costs - monthly payment of $420; in effect immediately; limited cash and loan funding - used angel investors Modest monthly draw of $600 a month for first year; should be divided evenly amoung the services (grooming, day care, boarding)
SALARY & HIRING DATA
Groomer (Allison) - $12.00 an hour, 40 hours a week Day Care Attendant (Beverly) - $9.00 per hour, based on need Receptionist (Cathie) - $8.50 per hour, 30 hours a week Kennel Attendant (Ben) - $11.50 per hour, based on need
HOME
ACC202 - MANAGERIAL ACCOUNTING
%23Home
OTHER COST DATA
Grooming: Dog Grooming Arm - $300 . Grooming Table - $900 Grooming Tub - $2,800 Clippers - $136.99; can be used for 100 grooms Shampoo - $103.96 per 5-gallon pail; can be used for 100 grooms Salon Tuff Capri Mobile Carry Cart - $90 Scissors (7 inch straight) - $194.99; used for 200 grooms Scissors (ear and nose) - $7.49; used for 200 grooms
Day Care: Fencing for Day Care area - $1,249 Fencing Installation - $1,000 Toys - $3.29 per 6 pack; one toy will last for two dogs in day care per day Rubberized Flooring for Day Care - $3,800
Boarding: 12 Kennels; Depreciation is $80 per month
General: Food & Water bowls - $3.59 per unit
Day Care - two bowls last for every 75 dogs that attend daycare Boarding - two bowls last for every 100 dogs boarded; two bowls per kennel Grooming - each bowl lasts for 20 grooms and you need 4 bowls at all times
Towels - $34.99 per 12 pack Day Care - 12 towels for every 25 dogs Boarding - 12 towels for every 40 dogs Grooming - 2 towels for every groom per day
Heating System - $10,000; Depreciation is $83 per month; Allocate based on square footage Rent - $650 per month; Allocate based on square footage Utilities / Insurance - $600 per month; Allocate based on square footage Cage Bank - $2,200 per set of 5 Dryer - $1,250 Cleaning Products
Odoban - $14.55 per gallon; Each area wil dilute 1 oz to 1 gallon of water; Allocate based on square footage Simple Green - $15.66 per gallon; Each area will dilute 1 oz to 1 gallon of water; Allocate based on square footage
.
ACC202 - MANAGERIAL ACCOUNTING
ACC202 - MANAGERIAL ACCOUNTING
ACC202 - MANAGERIAL ACCOUNTING
MILESTONE 1 - Company Profile
Compnay Name XYZ Corporation
Location
Vision
Mission
HOME
ACC202 - MANAGERIAL ACCOUNTING
%23Home
XYZ Corporation MILESTONE 1 - Cost Classification Exercise
INSTRUCTIONS:
Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. Other costs have been provided for you.
The fixed and variable cost classifications have been provided for you. For more information see Objective 1 in Chapter 5.
Item/Cost Direct
Material Direct Labor Overhead Period Costs Fixed Variable
Groomer x Day care attendant x Receptionist x Kennel attendant x x Food and water bowls x Depreciation on kennels x x Rent x Utilties and insurance x x Grooming tub 48" x Depreciation on heating system x Clippers x x Shampoo (Crystal Clear: five-gallon pail) x Towels x x Scissors (7-inch straight, ear & nose) x x Toys (used in day care only) x Cleaning products (used throughout) x Dryer x
HOME
ACC202 - MANAGERIAL ACCOUNTING
%23Home
XYZ Corporation MILESTONE 1 - Variable & Fixed Cost Exercise
INSTRUCTIONS: Determine the per unit cost for each dog. Fill in the blanks to get the per unit cost and fixed cost of each service.
Based on 5 grooms per day GROOMING
Item Variable Costs Item Fixed Costs
Shampoo $ - Groomer $ - Clipper(s) 1.37 Rent 30.95 Bowls 0.72 Loan 20.00 Towels 5.83 Utilities and Insurance 28.57 Scissors 1.01 Depreciation on heating system 3.95
Cleaning Products: Odoban 2.08 Cleaning Products: Simple Green 2.36 Draw 200.00
Total Variable Costs $ 9.97 Total Fixed Costs $ 2,367.91
Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attendant. DAY CARE
Item Variable Costs Item Fixed Costs
Day care attendant $ 2.88 Rent $ 232.14 Toys 0.27 Loan 150.00 Bowls 0.10 Utilities and Insurance - Towels 1.40 Depreciation on heating system 29.64
Cleaning Products: Odoban 15.59 Cleaning Products: Simple Green 16.78 Draw 200.00
Total Variable Costs Total Fixed Costs $ 858.44
Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING
Item Variable Costs Item Fixed Costs
Kennel attendant $ - Depreciation on kennels $ 80.00 Bowls 0.86 Rent 386.90 Towels 0.87 Loan 250.00
Utilities and Insurance - Depreciation on heating system 49.40 Cleaning Products: Odoban 25.98 Cleaning Products: Simple Green 29.55 Draw 200.00
Total Variable Costs $ 7.35 Total Fixed Costs $ 1,378.97
HOME
ACC202 - MANAGERIAL ACCOUNTING
%23Home
Southern New Hampshire University College of Continuing Education (COCE)
ACC202 - Managerial Accounting
INSTRUCTIONS FOR MILESTONE 2 (Due Week 4)
IMPORTANT NOTE:
Make sure to completely review the Rubric for Milestone 2
Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7)
ITEMS TO COMPLETE FOR THIS MILESTONE (Green Tabs):
GENERAL
Use data from Milestone 1 in your analysis
CONTRIBUTION MARGIN ANALYSIS
Select a price for each service (grooming, day care, boarding) Determine the variable cost from the Variable_Fixed tab for each service Calculate the contribution margin for each service based on your sales price and the variable cost for that service
BREAK-EVEN ANALYSIS
Determine the fixed cost from the Variable_Fixed tab for each service Fixed & Variable cost designation is provided Calculate the break-even units (round up) for each service Calculate the break-even units (round up) for suggested target profit levels for each service
HOME
ACC202 - MANAGERIAL ACCOUNTING
%23Home
XYZ Corporation MILESTONE 2 - Contribution Margin per Unit & Contribution Margin Ratio
INSTRUCTIONS: Select a price from the scenarios below and compute the contribution for each service based on your selected price. Variable cost per unit comes from your Variable_Fixed tab completed in Milestone 1.
SCENARIO (choose one from each category): Dog Day Care
1. With pricing at $18 per dog per day, you can expect to have 22 dogs per day. 2. With pricing at $20 per dog per day, you can expect to have 15 dogs per day. 3. With pricing at $25 per dog per day, you can expect to have 10 dogs per day.
Overnight Boarding 1. With pricing at $25 per dog per day, you can expect to have 12 dogs per day. 2. With pricing at $28 per dog per day, you can expect to have 10 dogs per day. 3. With pricing at $30 per dog per day, you can expect to have 7 dogs per day.
Basic Groom 1. With pricing at $25 per dog per day, you can expect to have 5 dogs per day. 2. With pricing at $30 per dog per day, you can expect to have 4 dogs per day. 3. With pricing at $35 per dog per day, you can expect to have 3 dogs per day.
DAY CARE BOARDING GROOMING
Sales Price per Unit $ - $ - $ - Variable Cost per Unit - - -
Contribution Margin $ - $ - $ -
HOME
ACC202 - MANAGERIAL ACCOUNTING
%23Home
XYZ Corporation MILESTONE 2 - Break-Even Analysis
INSTRUCTIONS: Show all steps and calculations to determine the break-even. Determine the break-even for the target profit levels as outlined in the instructions.
Break-even = Fixed Costs / Contribution Margin
DAY CARE BOARDING GROOMING
Sales Price $ - $ - $ -
Fixed Costs $ - $ - $ -
Contribution Margin $ - $ - $ -
Break-even Units (round up) - - -
Target Profit $ 417.00 $ 583.00 $ 1,000.00
Break-even Units (round up) - - -
Target Profit $ 667.00 $ 909.00 $ 1,500.00
Break-even Units (round up) - - -
HOME
ACC202 - MANAGERIAL ACCOUNTING
%23Home
Southern New Hampshire University College of Continuing Education (COCE)
ACC202 - Managerial Accounting
INSTRUCTIONS FOR MILESTONE 3 (Due Week 5)
IMPORTANT NOTE:
Make sure to completely review the Rubric for Milestone 3
Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7)
ITEMS TO COMPLETE FOR THIS MILESTONE (Purple Tabs):
GENERAL
Use data from Milestone 1 and Milestone 2 in your analysis Revenue data needed for the Income Statement will be provided at the end of Module 4
COST OF SERVICES PROVIDED SCHEDULE
Use the data at the top of the schedule to complete the report
INCOME STATEMENT
Use the data at the top of the schedule to complete the report Use the data from your Cost of Services Provided Schedule
VARIANCES
Use the data at the top of the schedule to calculate the following: Variance Favorable / Unfavorable
HOME
ACC202 - MANAGERIAL ACCOUNTING
%23Home
XYZ Corporation MILESTONE 3 - Statement of Cost of Services
INSTRUCTIONS: The following are the actual numbers for January:
Materials Purchased $5,000 of Materials Consumed 40% of those purchased materials
Direct Labor Direct Labor was $6,240
Overhead Overhead was $2,800
XYZ Corporation Statement of Cost of Services
For the Month Ended January 31, xxxx
Beginning Work in Process Inventory 0 Direct Materials:
Materials - Beginning 0 Add: Purchases for month of January
Materials Available for Use Deduct: Ending Materials
Materials Used
Direct Labor Overhead
Total Service Costs
Deduct: Ending Work in Process Inventory
Cost of Services
* Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain.
HOME
ACC202 - MANAGERIAL ACCOUNTING
%23Home
XYZ Corporation MILESTONE 3 - Income Statement
INSTRUCTIONS: Complete the Statement in proper form Revenue will be provided in an Announcement at the end of Module 4
(based on actual number of services for your pricing levels)
Additional Information necessary to complete the Income Statement: General & Administrative Salaries paid = $1,200 Advertising = $100 Cleaning Products = $120 Depreciation = $83 Rent = $650 Loan = $420 Utilities & Insurance = $600
XYZ Corporation Income Statement
For the Month Ended January 31, xxxx
Revenue: Grooming $ - Day Care - Boarding -
Tota Revenue $ - Cost of Services * - Gross Profit $ -
Expenses: G&A Salaries $ - Advertising - Cleaning Products - Depreciation - Rent - Loan - Utilities and Insurance -
Total Expenses $ -
Net Income / Loss $ -
* Cost of Goods Sold = Cost of Services There is no finished goods inventory to maintain.
HOME
ACC202 - MANAGERIAL ACCOUNTING
%23Home
XYZ Corporation MILESTONE 3 - Variance Analysis
INSTRUCTIONS: Prepare the variances and identify whether they are favorable or unfavorable. The below website will provide further assistance with variances:
http://accounting-simplified.com/management/variance-analysis/material/price.html
DATA FOR VARIANCE ANALYSIS:
Standard Hours / Qty
Standard Rate
Actual Hours / Qty
Actual Rate
Grooming Labor 150 $ 12.00 180 $ 11.50
Grooming Materials 1,000 $ 2.00 1,200 $ 3.00
Variance Favorable/
Unfavorable Groomer Direct Labor Time Variance
(Actual Hours - Standard Hours) x Standard Rate $ -
Groomer 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 $ -
HOME
ACC202 - MANAGERIAL ACCOUNTING
http://accounting-simplified.com/management/variance-analysis/material/price.html
%23Home