ACC202 M3 SNHU Income Statement Revenue Information In order to complete Milestone Three, you will need the following income statement revenue information.

ACC202 M3 SNHU Income Statement Revenue Information In order to complete Milestone Three, you will need the following income statement revenue information. Note that the revenue you use will depend on the
pricing level options you chose in Milestone Two. ACC 202 Milestone Three Income Statement Revenue Information
In order to complete Milestone Three, you will need the following income statement revenue information. Note that the revenue you use will depend on the
pricing level options you chose in Milestone Two.
Income for January-actual activity based on price levels:
For example, if you chose a grooming price of $25 per groom, the actual grooms in January were 4 per day assuming a 30-day month.
If you chose. . .
Grooming price $25
Grooming price $30
Grooming price $35
Daycare price $18
Daycare price $20
Daycare price $25
Kennel price $25
Kennel price $28
Kennel price $30
The actual # of grooms/daycare/kennel
4 grooms per day
3 grooms per day
2 grooms per day
22 dogs per day
12 dogs per day
9 dogs per day
12 dogs per day
9 dogs per day
6 dogs per day
Southern New Hampshire University
College of Continuing Education (COCE)
ACC 202 – Managerial Accounting
MILESTONE 1 (Due in Module 2)
MILESTONE 2 (Due in Module 4)
Instructions Milestone 1
1.
Company Profile
Instructions Milestone 2
1.
Name
Location
Vision
Mission
2.
Cost Classification
Identify the following:
Direct Materials
Diret Labor
Manufacturing Overhead
Period Costs
3.
Variable and Fixed Costs
Calculate the Variable and Fixed Costs for:
Grooming
Day Care
Boarding
MILESTONE 3 (Due in Module 5)
Contribution Margin
Instructions Milestone 3
1.
Choose a price range and calculate:
Grooming
Day Care
Boarding
2.
Break-Even Analysis
Create a Cost of Services Schedule.
2.
Calculate the break-even units:
Grooming
Day Care
Boarding
Calculate the break-even for target profits:
Grooming
Day Care
Boarding
ACC202 – MANAGERIAL ACCOUNTING
COS Schedule
Income Statement
Create an Income Statement.
Revenue will be provided at the end of week 4.
3.
Variances
Calculate for the Grooming line:
Direct Labor Time Variance
Direct Labor Rate Variance
Direct Materials Efficiency Variance
Direct Materials Price Variance
nd of week 4.
ACC202 – MANAGERIAL ACCOUNTING
Southern New Hampshire University
College of Continuing Education (COCE)
ACC 202 – 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 and variable cost designation is provided.
VARIABLE AND FIXED COSTS
Determine your per-unit cost per dog for grooming, day care, and boarding.
OPERATIONAL AND 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
ACC202 – MANAGERIAL ACCOUNTING
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 among the services (grooming, day care, boarding)
ACC202 – MANAGERIAL ACCOUNTING
SALARY & HIRING DATA
Groomer – $12.00 an hour, 40 hours a week
Day Care Attendant – $9.00 per hour, 22 days per month, 8 hours a day
Receptionist – $8.50 per hour, 30 hours a week
Kennel Attendant – $11.50 per hour, 22 days per month, 8 hours a day
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 and 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 will 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
HOME
ACC202 – MANAGERIAL ACCOUNTING
ACC202 – MANAGERIAL ACCOUNTING
HOME
MILESTONE 1 – Company Profile
Company Name
Shampooches grooming
Location
Santa Clara, California
Vision
Providing quality care for pets in a stress-free and fun environment.
Mission
Establishing a worthy, trust, and cleanest relation with clients
ACC202 – MANAGERIAL ACCOUNTING
HOME
Shampooches grooming
MILESTONE 1 – Cost Classification Exercise
INSTRUCTIONS:
Classify each item or cost as: Direct Material, Direct Labor, Manufacturing Overhead, or Period Costs.
Place an X in the appropriate column. No numbers are needed.
The fixed and variable cost classifications have been provided for you. For more information, see Objective 1 in Chapter 5.
Item/Cost
Groomer
Day care attendant
Receptionist
Kennel attendant
Food and water bowls
Fencing for day care area
Installation of fencing
Dog grooming arm (attaches to table)
12 kennels cost
Depreciation on kennels
Rent
Utilities and insurance
Grooming table
Grooming tub 48″
Heating system
Depreciation on heating system
Clippers
Shampoo (Crystal Clear: five-gallon pail)
Cage bank (set of five)
Salon Tuff Capri mobile carry cart
Towels
Scissors (7-inch straight, ear & nose)
Toys (used in day care only)
Cleaning products (used throughout)
Dryer
Rubberized flooring (day care)
Loan
Draw
Direct
Material
Direct
Labor
Manufacturing
Overhead
Period Costs
X
X
Fixed
Variable
X
X
X
x
X
x
X
x
x
x
x
x
x
x
x
x
x
x
X
X
X
X
X
X
x
x
X
x
x
x
x
X
X
x
x
x
ACC202 – MANAGERIAL ACCOUNTING
X
X
X
HOME
Paw Friendly Spa
MILESTONE 1 – Variable and 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. Most costs are provided for you. Only fill in the missing costs.
Based on 5 grooms per day
GROOMING
Item
Variable Costs
Item
Fixed Costs
Shampoo
Clipper(s)
Bowls
Towels
Scissors
$
1.04
1.37
0.72
5.83
1.01
Groomer
Rent
Loan
Utilities and Insurance
Depreciation on heating system
Cleaning Products: Odoban
Cleaning Products: Simple Green
Draw
$
2,080.01
30.95
20.00
28.57
3.95
2.08
2.36
200.00
Total Variable Costs
$
9.97
Total Fixed Costs
$
2,367.92
Based on 22 dogs per day, 25 operating days for day care, and 22 eight-hour work days for day care attendant.
DAY CARE
Item
Variable Costs
Item
Fixed Costs
Day care attendant
Toys
Bowls
Towels
$
2.88
0.27
0.19
1.40
Rent
Loan
Utilities and Insurance
Depreciation on heating system
Cleaning Products: Odoban
Cleaning Products: Simple Green
Draw
$
232.14
150.00
214.29
29.64
15.59
16.78
200.00
Total Variable Costs
$
4.74
Total Fixed Costs
$
858.44
Based on 12 dogs per day, 30 operating days for boarding, and 22 eight-hour work days for kennel attendant.
BOARDING
Item
Variable Costs
Item
Fixed Costs
Kennel attendant
Bowls
Towels
$
5.62
0.86
0.87
Depreciation on kennels
Rent
Loan
Utilities and Insurance
Depreciation on heating system
Cleaning Products: Odoban
Cleaning Products: Simple Green
Draw
$
80.00
386.90
250.00
357.14
49.40
25.98
29.55
200.00
Total Variable Costs
$
7.35
Total Fixed Costs
$
1,378.97
ACC202 – MANAGERIAL ACCOUNTING
Southern New Hampshire University
College of Continuing Education (COCE)
ACC 202 – Managerial Accounting
HOME
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 and 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.
ACC202 – MANAGERIAL ACCOUNTING
HOME
Shampooches grooming
MILESTONE 2 – Contribution Margin per Unit and Contribution Margin Ratio
GROOMING
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.
BOARDING
Sales Price
$
Variable Cost per Unit
Contribution Margin%
Contribution Margin
$
Total #of dogs per day
Total contribution margin
Sales for 1 month
25.00
9.97
60%
15.03
5
$75.15
Sales for 1mth
DAY CARE
Sales Price
Variable Cost per Unit
Contribution Margin%
Contribution Margin
Total # of dogs per day
$
$
Total contribution margin
Total sales for one month
DAY CARE
$125.00
75.15
3,750
Sales price
Variable cost per unit
Contribution Margin%
Contribution Margin
Total #of dogs per day
Total contrib margin
BOARDING
GROOMING
Sales Price
Variable Cost per Unit
$
18.00
4.74
$
25.00
7.35
$
25.00
9.97
Contribution Margin
$
13.26
$
17.65
$
15.03
(Sales – Variable expenses) ÷ Sales
ACC202 – MANAGERIAL ACCOUNTING
18.00
4.74
74%
13.26
22
291.5
396
291.5
396
11,880
$ 25.00
7.36
71%
$ 17.64
12
211.68
300
211.68
9,000.00
HOME
Shampooches grooming
MILESTONE 2 – Break-Even Analysis
Grooming
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
$
18.00
$
25.00
$
25.00
Fixed Costs
$
858
$
1,379
$
2,368
Contribution Margin
$
13.26
$
17.65
$
15.03
Break-Even Units (round up)
Target Profit
65.00
$
Break-Even Units (round up)
Target Profit
Break-Even Units (round up)
417.00
78.00
$
96.00
$
667.00
115.00
583.00
158.00
$
111.00
$
909.00
130.00
1,000.00
224.00
$
1,500.00
257.00
Day Care
Fixed Costs
$
Contribution Margin %
Contribution Margin $
60%
2,368
Break-Even Sales = $
Break-Even Units =
3,946.53
158
15.03
$ 1,000 Target Profit
Break-Even Sales = $
Break-Even Units =
$ 1,500 Target Profit
Break-Even Sales = $
Break-Even Units =
Fixed Costs
$
Contribution Margin %
Contribution Margin
$
859
74%
13.26
Break-Even Sales =
Break-Even Units =
1,161.34
65
$
$ 417 Target Profit
224
257
5,613
6,447
Sales based on 25.00 per unit
Break-Even Sales =
Break-Even Units =
$
1,725
96.2586727
$ 667 Target Profit
Break-Even Sales =
Break-Even Units =
$
2,063
115
Sales based on 18.00 per unit
Boarding
Fixed Costs
$
Contribution Margin %
71%
1,379
Contribution Margin $
17.64
Break-Even Sales = $
Break-Even Units =
1,942.24
78
$ 583 Target Profit
Break-Even Sales =
Break-Even Units =
2,763
111
$ 909 Target Profit
Break-Even Sales =
Break-Even Units =
3,223
130
Sales based on 25.00 per unit
the break-even point in sales units:
BEP (units)=Fixed cost/Contribution margin per unit
the break-even point in sales units if the company desires a target profit of
BEP (units)=(Fixed cost+desired profit)/Contribution margin per unit
ACC202 – MANAGERIAL ACCOUNTING
Southern New Hampshire University
HOME
College of Continuing Education (COCE)
ACC 202 – 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.
Data needed for the income statement will be shared in an announcement at the end of Module Four.
COST OF SERVICES SCHEDULE (THIS IS THE SAME AS A COST OF GOODS MANUFACTURED SCHEDULE. THIS IS USED FOR SERVICE COMPANIES.)
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 COS Schedule.
VARIANCES
Use the data at the top of the schedule to calculate the following:
Variance
Favorable / Unfavorable
ACC202 – MANAGERIAL ACCOUNTING
HOME
Shampooches grooming
MILESTONE 3 – Statement of Cost of Goods Manufactured
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
Factory Overhead
Factory Overhead was $2,800
Shampooches grooming
Statement of Cost of Goods Manufactured
For the Month Ended January 31, xxxx
Beginning Work in Process Inventory
Direct Materials:
Materials – Beginning
Add: Purchases for month of January
$
$
Materials Available for Use
Deduct: Ending Materials
$
Materials Used in Production
–
5,000
5,000.00
(3,000)
$
2,000.00
Direct Labor
Factory Overhead
6,240
2,800
Total Manufacturing Overhead
$
11,040.00
$
11,040
Deduct: Ending Work in Process Inventory
Cost of Goods Manufactured
ACC202 – MANAGERIAL ACCOUNTING
HOME
Income for January – actual
activity based on price
levels.
For example, if you chose a grooming price of $25 per groom, the
actual grooms in January were 4 per day. Assume a 30-day
Grooming – price of $25 actual grooms were 4 per
day; price of $30 – actual
grooms were 3 per day; price
of $35 – actual grooms were
2 per day
Shampooches grooming
MILESTONE 3 – Income Statement
Daycare – price of $18 – 22
dogs were housed; price of
$20 – 12 dogs were housed;
at $25 – 9 dogs were housed
(all per day)
INSTRUCTIONS:
Complete the Statement in proper form
Revenue will be provided in an Announcement at the end of Module 4
Kennel – price of $25 – 12
dogs were housed; at $28 – 9
dogs were housed; at $30 – 6
dogs were housed (per day)
(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
Shampooches grooming
Income Statement
For the Month Ended January 31, xxxx
Revenue:
Grooming
Day Care
Boarding
Tota Revenue
Cost of Goods Sold *
Gross Profit
Expenses:
G&A Salaries
Advertising
Cleaning Products
Depreciation
Rent
Loan
Utilities and Insurance
$
$
Total Expenses
$
11,040.00
(11,040.00)
$
3,173.00
1,200
100
120
83
650.00
420.00
600.00
Net Income / Loss
* Cost of Goods Sold = Cost of Goods Manufactured (COGM).
There is no finished goods inventory to maintain.
ACC202 – MANAGERIAL ACCOUNTING
HOME
Shampooches grooming
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
Grooming Labor
Grooming Materials
Standard
Actual
Actual
150 $
12.00
180 $
11.50
1,000 $
2.00
1,200 $
3.00
Variance
Favorable/
Groomer Direct Labor Time Variance
(Actual Hours – Standard Hours) x Standard Rate
$
360.00 unfavorable
Groomer Direct Labor Rate Variance
(Actual Rate – Standard Rate) x Actual Hours
$
90.00 favorable
Direct Materials Quantity/Efficiency Variance
(Actual Quantity – Standard Quantity) x Standard Price
$
400.00 unfavorable
Direct Materials Price Variance
(Actual Price – Standard Price) x Actual Quantity
$
1,200.00 unfavorable
ACC202 – MANAGERIAL ACCOUNTING

Purchase answer to see full
attachment