Fluent Essays

Overview Successful entrepreneurs understand all aspects of business, especially costs and costing systems. In the course project, you will assume the role of the owner of a small business and apply managerial accounting principles to evaluate and manage costs related to your services within a costing system. In the first milestone of the project, you will determine and classify the costs necessary for opening your business. Scenario You plan to open a business manufacturing collars, leashes, and harnesses for pets. To begin, you will manufacture these in a standard style and size with plans to expand your range over the year. In a few weeks, you will present your company’s financial strategy to some key investors. To begin creating your strategy, you need to consider and record all the costs associated with operating your business. You have decided to use the job order costing system. Prompt 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. o  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.) o  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. Guidelines for Submission Submit the Project Workbook with the “Cost Classification” and “Fixed and Variable Costs” tabs completed. This file should be completed and submitted using Microsoft Excel.Instructions 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 ACC202 - MANAGERIAL ACCOUNTING Company Profile /xl/drawings/drawing1.xml#CompanyProfile Variable & Fixed Costs /xl/drawings/drawing1.xml#VariableFixedCosts Cost Classification /xl/drawings/drawing1.xml#CostClassification Contribution Margin /xl/drawings/drawing1.xml#ContributionMargin Break-Even Analysis /xl/drawings/drawing1.xml#BreakevenAnalysis COGM Schedule /xl/drawings/drawing1.xml#COGMSchedule Income Statement /xl/drawings/drawing1.xml#COGMSchedule Variances /xl/drawings/drawing1.xml#Variances Instructions Milestone 1 /xl/drawings/drawing1.xml#InstructionsMilestone1 Instructions Milestone 2 /xl/drawings/drawing1.xml#Instructions\%20-\%20Milestone\%202!InstructionsMilestone2 Instructions Milestone 3 /xl/drawings/drawing1.xml#Instructions\%20-\%20Milestone\%203!InstructionsMilestone3 Instructions - Milestone 1 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 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 dailACC 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 · 2 harnesses per yard of webbing · Polyester/nylon 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 · Salary drawn of $500 per month 1