Question

help? I am a little lost here.

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. B crete (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 & 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 dajs a week h grooming taks 1.5 labor hours Dag 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 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 amoung the services [grooming, day care, boarding) SALARY& HIRING DATA Groomer(Allison] - $12.00 an hour, 40 hours a week Day Care Attendant (Beverly)-$9.00 per hour, based on need Receptionist (Cathie)- $8.50 per hour, 30 hours a week Kennel Attndant Ben 11.50 per hour, based on need OTHER COST DATA Grooming: Dog Grooming Arm $300 Grooming Table $900 Grooming Tub $2,800 Clippers $136.39; can be used or 100 grooms Shampoo $103.96 per 5-gallon pail; can be used for 100 grooms Salon Tuff Capri Mobile Carry Cart $30 Scissors(7 inch straight-$194.99; used for 200 grooms Scissors (ear and nose) - $7.49; used for 200 grooms Day Care: Fencing for Da Cae 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 & Water bowls $3.59 per unit Da Care- two bowlslast for every 75 dogs that attend daycare Boarding - two bowls last forevery 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 r every 40 dogs Grooming 2 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 UtilitiesInsurance $600 per month; Allocate based on square footage Cage Bank $2,200 per set of5 Dryer $1,250 Cleaning Products Odoban $14.55 per gallon; Each area wil dilute 1oz to 1gallon of water; Allocate based on square footage Simple Green- $15.66 per gallon; Each area will dilute 1oz to 1gallon of water; Allocate based on square footage XYZ Corporation MILESTONE 1 - Variable & Fixed Cost Exercise Determine the per unit cost for each dog. Fill in the blanks to get the per unit cost and fixed cost of each service. Based on 5 grooms per day GROOMING Item Variable Costs Item Fixed Costs Clipper(s) Bowls Towels Scissors 1.37 0.72 5.83 1.01 30.95 20.00 28.57 3.95 2.08 2.36 200.00 2,367.91 Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Total Variable Costs 9.97 Total Fixed Costs Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attenda DAY CARE Variable Costs Item Fixed Costs Daycare attendant Toys Bowls Towels 2.88 0.27 0.10 1.40 232.14 150.00 Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw 29.64 15.59 16.78 200.00 858.44 Total Variable Costs Total Fixed Costs Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. Variable Costs Item Fixed Costs Kennel attendant Bowls Towels Depreciation on kennels Rent 80.00 386.90 250.00 0.86 0.87 Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw 49.40 25.98 29.55 200.00 1,378.97 Total Variable Costs 7.35 Total Fixed Costs Paws and Company MILESTONE 1-Cost Classification Exercise Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Periad Costs. Other costs have been provided for you The fixed and variable cost classifications have been provided foryou. For more information see Objective 1 in Chapter S. Costs (Payments) for the Purpose Direct Direct Labor Period Costs Fixed Variable Period Costs Day care attendant Food and water bowls on kennels Rent Utilties and insurance Groomingtub 48 Depraciation on heating system Clippers Shampoo (Crystal Clear:five-galion pail) Towels Scissors (7-inch straight, ear & nose) Toys (used in day care only) Cleaning products (used throughout) Dryer Inventory (Balance Sheet) Cost of ing an min Exp. s Sold Income State e Stat

Answer 1

Direct Material Direct Labor Manufacturing Overhead Item/Cost Period Costs Fixed Variable Groomer Day care attendant Receptionist Kennel attendant Food and water bowls encing for day care area Installation of fencing Dog grooming arm (attaches to table) 12 kennels cost Depreciation on kennels Rent Utilties and insurance Grooming table Grooming tub 48" Heating system Depreciation on heating system 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) Rubberized flooring (day care) Loan Draw

Based on 5 grooms per day GROOMING Variable Costs Fixed Costs tem Item Groomer Rent Loan Utilities and Insurance Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Shampoo (103.96/100) Clipper(s) Bowls Towels Scissors 2,080.01 30.95 20.00 28.57 95 2.08 2.36 1.04 1.37 0.72 5.83 1.01 Total Variable Costs Total Fixed Costs 2,367.92 9.97 Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attendant. DAY CARE Item Variable Costs Fixed Costs Item Rent Loan Utilities and Insurance 600 (1500/4200) Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Day care attendant Toys Bowls Towels 2.88 0.27 0.10 1.40 232.14 150.00 214.29 15.59 16.78 200.00 858.44 Total Variable Costs Total Fixed Costs 4.65 Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant. BOARDING Variable Costs Fixed Costs tem Item Depreciation on kennels Rent Loan Utilities and Insurance ROUND(600* (2500/4200),2) Depreciation on heating system Cleaning Products: Odoban Cleaning Products: Simple Green Draw Kennel attendant ROUND (11.5 *8)*22/(12*30),2)$ Bowls Towels 5.62 0.86 0.87 80.00 386.90 250.00 357.14 49.40 25.98 29.55 Total Variable Costs Total Fixed Costs 7.35 1,378.97