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 startup 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 0 One collar maker, who will be paid $16.00 per hour and work 40 hours per week a One leash maker, who will be paid $16.00 per hour and work 40 hours per week a One harness maker, who will be paid $17.00 per hour and work 40 hours per week a One receptionist, who will be paid $15.00 per hour and work 30 hours per week Other Costs 0 Rent: $750 per month; allocate based on square footage - Hightensile strength nylon webbing$12 per yard of webbing o 3 collars per yard of webbing o 2 leashes per yard of webbing 0 2 harnesses per yard of webbing o Polyesterylon ribbons$9 per yard of ribbon o 3 collars per yard of ribbon 0 2 leashes per yard of ribbon o 2 harnesses per yard of ribbon - Buckles made of cast hardware$0.50 per buckle o 4 buckles used per collar 0 3 buckles used per leash o 8 buckles used per harness o 3 industrial sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5 year life, zero salvage value) 0 Utilities and insurance: $600 per month; allocate based on square footage - Scissors, thread, cording: $1,200 a Price tags: $250 for 2,500 ($0.10 each} 0 Office supplies: $2,400 or $200 per month o Other business equipment: $2,000 a Loan payment of $550 per month 0 Salary drawn of $500 per month Prompt Use the information in the Milestone Three Actual Costs and Revenue Data Amendix Word Document to evaluate your company's performance, and complete the remaining tabs in the mject Workbook Spreadsheet that you used for the Milestone One and Two assignments. Specically, you must address the following rubric criteria: 0 Statement of Cost of Goods Sold: Prepare the statement of cost of goods sold in the "COGS" tab of the workbook. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table. 0 Income Statement: Use the given revenue data to prepare the "Income Statement\" tab table and calculate the net income. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table. 0 Variance Analysis: Prepare the data in the "Variances\" tab to determine whether the variances are favorable or unfavorable. Remember to show your work using calculations to the side of the table or using appropriate formulas in the table. 0 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 your Milestone Two assignment. 0 Determine the variances for direct labor and direct materials in the \"Variances\" tab. 0 Evaluate the signicance of the variances in the \"Variances\" tab, and mark them as favorable or unfavorable. 2 Milestone Three - Statement of Cost of Goods Sold Beginning Work in Process Inventory Direct Materials: Materials: Beginning 0 Add: Purchases for month of January Materials available for use 12 Deduct: Ending materials 4 Materials Used 5 Direct Labor . 6 Overhead 8 Total Costs 9 Deduct: Ending Work in Process Inventory 0 22 Cost of Goods Sold 25 26 27 28B C D E Milestone Three - Income Statement Revenue: Collars Leashes Harnesses Total Revenue: Cost of goods sold Gross profit $ Expenses: General and administrative salaries S Office supplies Other business equipment Total Expenses $ Net Income/Loss $Milestone Three - Variance Analysis Data for Variance Analysis: Budgeted Budgeted Actual Actual (Standard) (Standard) Hours/Qty Rate Hours/Qty Rate Labor Materials Variances for Collar Sales Favorable/ Variance Unfavorable Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $ Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours S Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity S