Use the information in the Milestone Three Actual Costs and Revenue Data Appendix Word Document to evaluate your company

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Use the information in the Milestone Three Actual Costs and
Revenue Data Appendix Word Document to evaluate your company’s
performance, and complete the remaining tabs in the Project
Workbook Spreadsheet that you used for the Milestone One and
Two assignments.
Specifically, you must address the following rubric
criteria:
At the end of the first month of opening your business, you
calculate the actual operating costs of the business and the income
you earned. You also notice and document the difference in what you
budgeted for certain materials and labor against the actual amounts
you spent on the same.
For your statement of cost of goods sold, use the following data
regarding the actual costs incurred by the business over the past
month:
· Materials purchased: $20,000
o Consumed 80% of the purchased materials
· Direct labor: $8,493
· Overhead costs: $3,765
Note: Assume that the beginning materials and ending work in
process are zero for the month.
Use the following revenue and cost information for the income
statement. Note that the revenue you use will depend on the pricing
level options you chose in Milestone Two. Also, assume that after
accounting for weekends and other holidays, there were 20 business
days in the first month of operation. For example, if you chose a
sales price of $20 per collar, the actual number of collars sold in
the month was 33 per day or 33 x 20 = 660 per month.
Established Sales Price Number of Items Sold per Day

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The other costs incurred by the business include:
General and administrative salaries
- Receptionist: $1,950
- Office supplies: $200
- Other business equipment: $150
Variance
At the end of the month, you find that the labor and materials
spent on manufacturing collars was different from what you
estimated:
· The collar maker had to work nine hours a day instead of eight
due to an increased demand for collars.
· Because of the increased demand, the hourly rate you paid your
employee for making the collars increased to $16.50.
· An increase in the cost of raw material led the direct
material cost per collar to increase to $10.
· However, you also made and sold 60 more collars than you
expected to sell in the month.
You now need to determine the variance in the materials and
labor cost from what you estimated in Milestone Two based on the
market research data.

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Established Sales Price Collars $20 $24 $28 Leashes $22 $26 $30 Harnesses $25 $30 $35 Number of Items Sold per Day 33 28 23 28 23 18 25 22 20
Collars Item High-tensile strength nylon webbing Polyester/nylon ribbons Buckles made of cast hardware Price tags Total Variable Costs per Collar Leashes Item High-tensile strength nylon webbing Polyester/nylon ribbons Buckles made of cast hardware Price tags Total Variable Costs per Leash Harnesses Item High-tensile strength nylon webbing Polyester/nylon ribbons Buckles made of cast hardware Price tags Total Variable Costs per Harness Variable Cost/Item $ $ $ es is is is 4.00 ($12/3) 3.00 ($9/3) 2.00 (4*0.5) $ 0.10 (given) $ 9.10 Variable Cost/Item $ 6.00 [$12/2] 4.50 [$9/2] $ $ 1.50 (3*0.5) $ 0.10 (given) $ 12.10 Variable Cost/Item $ is is es is isis is in $ $ $ $ 6.00 [$12/2] 4.50 [$9/2] 4.00 (8*0.5) 0.10 (given) 14.60 Item Collar maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fixed Costs Item Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fixed Costs Item Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Salary to self Total Fixed Costs isis es isis is is $ $ $ $ $ $ $ $ $ $ $ is is es isis is is $ $ $ $ $ $ sssssssssss $ $ $ $ $ $ $ Fixed Costs 2,773.33 55.00 250.00 200.00 400.00 183.33 166.67 4,028.33 Fixed Costs 2,773.33 55.00 250.00 200.00 400.00 183.33 166.67 4,028.33 Fixed Costs 2,946.67 55.00 250.00 200.00 400.00 183.33 166.67 4,201.67
Milestone Two - Contribution Margin Analysis COLLARS Sales Price per Unit Variable Cost per Unit Contribution Margin $ $ 20.00 9.10 11.00 $ 10.9 $ LEASHES 22.00 12.10 10.00 $ 9.9 $ HARNESSES 25.00 14.60 10.40
Milestone Two - Break-Even Analysis Sales Price Fixed Costs Contribution Margin Break-Even Units (round up) Target Profit Break-Even Units (round up) Target Profit Break-Even Units (round up) $ $ $ $ $ COLLARS 20.00 4,028 11.00 367.00 300.00 394.00 500.00 412.00 $ $ $ $ $ LEASHES 22.00 4,028 10.00 403.00 400.00 443.00 600.00 463.00 $ $ $ $ HARNESSES 25.00 4,202 10.40 404.00 500.00 453.00 650.00 467.00
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 Cost of Goods Sold 0 $ 0
Milestone Three - Income Statement Revenue: Collars Leashes Harnesses Total Revenue: Cost of goods sold Gross profit Expenses: General and administrative salaries Office supplies Other business equipment Total Expenses Net Income/Loss S $ $ $ $
Milestone Three - Variance Analysis Data for Variance Analysis: Budgeted (Standard) Hours/Qty Labor Materials Variances for Collar Sales 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 Budgeted (Standard) Rate S $ $ Actual Hours/Qty Variance Actual Rate Favorable/ Unfavorable