B C D E F G H 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. Direct Direct Item/Cost Material Labor Overhead Period Costs Fixed Variable Salary - Collar maker X Salary - Leash maker Salary - Harness maker Salary - Receptionist High-tensile strength nylon webbing Polyesterylon ribbons Buckles made of cast hardware Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Price tags Office supplies Other business equipment Loan payment - . . . . Salary to selfB C D E F G H 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. Direct Direct Item/Cost Material Labor Overhead Period Costs Fixed Variable Salary - Collar maker X Salary - Leash maker Salary - Harness maker Salary - Receptionist High-tensile strength nylon webbing Polyesterylon ribbons Buckles made of cast hardware Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Price tags Office supplies Other business equipment Loan payment - . . . . Salary to selfFile Home Insert Page Layout Formulas Data Review View Automate Help 8 PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View, 31 B C D E F G H Milestone One - Variable and Fixed Costs Collars Item ariable Cost/Item Item Fixed Costs High-tensile strength nylon webbil $ 4.00 Collar maker's salary (monthly) 2.773.33 Polyesternylon ribbons Depreciation on sewing machines Buckles made of cast hardware Ren Price tags Jtilities and insurance Scissors, thread, and cording Loan payment 183.33 Salary to self 166.67 Total Variable Costs per Collar Total Fixed Costs Leashes Item ariable Cost/Item Item Fixed Costs High-tensile strength nylon webbing Leash maker's salary (monthly) Polyesternylon ribbons Depreciation on sewing machines Buckles made of cast hardware Rent Price tags Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Variable Costs per Leash Total Fixed Costs Harnesses Iten ariable Cost/Item Item Fixed Costs High-tensile strength nylon webbing Harness maker's salary Polyesternylon ribbons depreciation on sewing machines Buckles made of cast hardware Ren Price tags Jtilities and insurance Scissors, thread, and cording Loan Salary to self Total Variable Costs per Harness Total Fixed Costs Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even AnFile Home Insert Page Layout Formulas Data Review View Automate Help 8 PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View, 31 B C D E F G H Milestone One - Variable and Fixed Costs Collars Item ariable Cost/Item Item Fixed Costs High-tensile strength nylon webbil $ 4.00 Collar maker's salary (monthly) 2.773.33 Polyesternylon ribbons Depreciation on sewing machines Buckles made of cast hardware Ren Price tags Jtilities and insurance Scissors, thread, and cording Loan payment 183.33 Salary to self 166.67 Total Variable Costs per Collar Total Fixed Costs Leashes Item ariable Cost/Item Item Fixed Costs High-tensile strength nylon webbing Leash maker's salary (monthly) Polyesternylon ribbons Depreciation on sewing machines Buckles made of cast hardware Rent Price tags Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Variable Costs per Leash Total Fixed Costs Harnesses Iten ariable Cost/Item Item Fixed Costs High-tensile strength nylon webbing Harness maker's salary Polyesternylon ribbons depreciation on sewing machines Buckles made of cast hardware Ren Price tags Jtilities and insurance Scissors, thread, and cording Loan Salary to self Total Variable Costs per Harness Total Fixed Costs Cost Classification Variable and Fixed Costs Contribution Margin Analysis Break-Even AnFile Home Insert Page Layout Formulas Data Review View Automate Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editin B8 V XV fry A B C D E F G H Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit Contribution MarginFile Home Insert Page Layout Formulas Data Review View Automate Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editin B8 V XV fry A B C D E F G H Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit Contribution MarginFile Home Insert Page Layout Formulas Data Review View Automate Help @ PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit. it's safer to stay in Protected Wiew. | Enable Editing 37 v | i fx~ ="Contribution Margin Analysis'!B8 Milestone Two - Break-Even Analysis COLLARS LEASHES HARNESSES Sales Price :! 5 - g - Fixed Costs 5 - 5 - g - I Contribution Margin 5 - 5 - g - Break-Even Units (round up) - - - Target Profit 5 300.00 S 400.00 & 500.00 Break-Even Units (round up) - Target Profit 5 500.00 s 600.00 s 650.00 Break-Even Units (round up) - File Home Insert Page Layout Formulas Data Review View Automate Help @ PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit. it's safer to stay in Protected Wiew. | Enable Editing 37 v | i fx~ ="Contribution Margin Analysis'!B8 Milestone Two - Break-Even Analysis COLLARS LEASHES HARNESSES Sales Price :! 5 - g - Fixed Costs 5 - 5 - g - I Contribution Margin 5 - 5 - g - Break-Even Units (round up) - - - Target Profit 5 300.00 S 400.00 & 500.00 Break-Even Units (round up) - Target Profit 5 500.00 s 600.00 s 650.00 Break-Even Units (round up) - PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing C14 XV fv A B C D E F G H J Beginning Work in Process Inventory S 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 SoldPROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing C14 XV fv A B C D E F G H J Beginning Work in Process Inventory S 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 SoldFile Home Insert Page Layout Formulas Data Review \\iew Automate Help @ PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit. it's safer to stay in Protected View. | Enable Editing A6 v Jfx - Office supplies A B = D E F G H I ] K L Milestone Three - Income Statement Revenue: Collars Leashes Harnesses Total Revenue: . |Cost of goods sold - ! |Gross profit | Expenses: General and administrative salaries 5 - i | Office supplies I B Other business equipment - Total Expenses . |Net Income/Loss 5 - File Home Insert Page Layout Formulas Data Review \\iew Automate Help @ PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit. it's safer to stay in Protected View. | Enable Editing A6 v Jfx - Office supplies A B = D E F G H I ] K L Milestone Three - Income Statement Revenue: Collars Leashes Harnesses Total Revenue: . |Cost of goods sold - ! |Gross profit | Expenses: General and administrative salaries 5 - i | Office supplies I B Other business equipment - Total Expenses . |Net Income/Loss 5 - File Home Insert Page Layout Formulas Data Review View Automate Help 6 PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing A2 vi XV fx Milestone Three - Variance Analysis B C D E F G H K 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 S Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours S Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price S Direct Materials Price Variance (Actual Price - Standard Price) x Actual QuantityFile Home Insert Page Layout Formulas Data Review View Automate Help 6 PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing A2 vi XV fx Milestone Three - Variance Analysis B C D E F G H K 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 S Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours S Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price S Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity# ACC-202-17934-MO01 Managerial Accounting 2024 C-5(.. 88 &= & N Course Menu ~ Tools v mySNHU ~ Shapiro Library ~ Academic Support Help ~ Table of Contents s Assignment Information Milestone One Guidelines and Rubric Milestone One Guidelines and Rubric ~ 0 A -~ = | i Listen | p | ACC 202 Milestone One Guidelines and Rubric 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 Word Document to complete the first two tabs, \"Cost Classification\" and \"Variable and Fixed Costs,\" in the Project Workbook Spreadsheet. Specifically, you must address the following rubric criteria: Cost Classification. Accurately classify all your costs in the \"Cost Classification\" tab of your workbook. o ldentify 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. What to Submit 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 A B C D E F Milestone Three - Statement of Cost of Goods Sold 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 SoldA B C D E F G H Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit 1 Contribution MarginA B C D E Milestone Three - Income Statement Revenue: 6 Collars S Leashes Harnesses 10 Total Revenue: S 11 Cost of goods sold Gross profit S 13 14 Expenses: 15 General and administrative salaries 16 Office supplies 17 Other business equipment 18 19 Total Expenses S 20 21 Net Income/Loss S 22 23 24 26 27A B C D E F G H W N P Milestone Three - Variance Analysis Data for Variance Analysis: Budgeted Budgeted Actual Actual (Standard) [Standard) Hours/Qty Rate Hours/Qty Rate Labor 10 11 Materials 12 13 14 15 Variances for Collar Sales Favorable/ 16 Variance Unfavorable 17 Direct Labor Time Variance 18 (Actual Hours - Standard Hours) x Standard Rate S 19 20 Direct Labor Rate Variance 21 (Actual Rate - Standard Rate) x Actual Hours 5 22 23 Direct Materials Quantity/Efficiency Variance 24 (Actual Quantity - Standard Quantity) x Standard Price S 25 26 Direct Materials Price Variance 27 (Actual Price - Standard Price) x Actual Quantity 5 28 29Milestone Three - Variance Analysis Data for Variance Analysis: Budgeted Budgeted Actual Actual (Standard) (Standard) Hours/Qty Rate Hours/Qty Rate Labor 160 | S 16.00 180 | S 16.50 Materials 660 | S 9.10 720 | S 10.00 Variances for Collar Sales Favorable/ Variance Unfavorable Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate S 320.00 Unfavorable Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours S 90.00 Unfavorable Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price S 546.00 Unfavorable Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity S 648.00 Unfavorable Milestone Three - Income Statement Revenue: Collars S leashes Harnesses Total Revenue: Cost of goods sold Gross profit Expenses: General and administrative salaries S Depreciation Rent Utilities and insurance Scissors, thread, and cording S Loan Total Expenses Net Income/Loss 12,880 10,800 14,000 (2,450) (165) (750) ) (1,200.00) (550) 37,680 (28,258) 9,422 (5,715.00) 3,706.67 Milestone Three - Statement of Cost of Goods Sold Beginning Work in Process Inventory 0 Direct Materials: Materials: Beginning 0 Add: Purchases for month of January S 20,000 Materials available for use 20,000 Deduct: Ending materials 4,000 Materials Used S 16,000 Direct Labor 8,493 Overhead 3,765 Total Costs S 28,258 Deduct: Ending Work in Process Inventory S - Cost of Goods Sold S 28,258.33 Milestone Two - Contribution Margin Analysis COLLARS Sales Price per Unit S 20.00 Variable Cost per Unit 9.10 Contribution Margin 5 10.90 LEASHES S 22.00 12.10 S 9.90 S HARNESSES 25.00 14.60 10.40