Milestone Three - Variance Analysis
Data for Variance Analysis:
	Budgeted (Standard) Hours/Qty	Budgeted (Standard) Rate	Actual Hours/Qty	Actual Rate
Labor
Materials
Variances for Collar Sales
			Variance	Favorable/ Unfavorable
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			$ -

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 - Polyesterylon ribbons $9 per yard of ribbon 3 collars per yard of ribbon 2 leashes per yard of ribbon 2 harnesses per yard of ribbon - 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 (5year life, zero salvage value) - 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