University:
Eastern Kentucky University
Course:
ACC 200 | Survey of Accounting
Academic year:

2021
Views:

153

Pages:

4
Author:

gildnar99xu

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. Item/Cost Direct Material Direct Labor Overhead Period Costs Fixed Variable Salary - Collar maker x x Salary - Leash maker x x Salary - Harness maker x x x Salary - Receptionist High-tensile strength nylon webbing x x Polyester/nylon ribbons x x Buckles made of cast hardware x x Depreciation on sewing machines x x Rent x x Utilities and insurance x x Scissors, thread, and cording x x Price tags x x x Office supplies x Other business equipment x Loan payment x x x Salary to self x x x Milestone One - Variable and Fixed Costs Collars Item Variable Cost/Item High-tensile strength nylon webbing $ Polyester/nylon ribbons $ Buckles made of cast hardware $ Price tags $ Total Variable Costs per Collar $ 4.00 3.00 2.00 0.10 Item Fixed Costs Collar maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self 9.10 Total Fixed Costs $ $ $ $ $ $ $ $ 2,773.33 55.00 250.00 200.00 400.00 183.33 166.67 4,028.33 Leashes Item Variable Cost/Item High-tensile strength nylon webbing $ Polyester/nylon ribbons $ Buckles made of cast hardware $ Price tags $ Total Variable Costs per Leash $ 6.00 4.50 1.50 0.10 Item Fixed Costs Leash maker's salary (monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self 12.10 Total Fixed Costs $ $ $ $ $ $ $ 2,773.33 55.00 250.00 200.00 400.00 183.33 166.67 $ 4,028.33 Harnesses Item Variable Cost/Item High-tensile strength nylon webbing $ Polyester/nylon ribbons $ Buckles made of cast hardware $ Price tags $ 6.00 4.50 4.00 0.10 Item Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Fixed Costs $ $ $ $ $ $ 2,946.67 55.00 250.00 200.00 400.00 183.33 S l Total Variable Costs per Harness $ 14.60 t lf $ 166 67 Total Fixed Costs $ 4,201.67 Milestone Two - Contribution Margin Analysis COLLARS LEASHES HARNESSES Sales Price per Unit Variable Cost per Unit $ 24.00 9.10 $ 22.00 12.10 $ 35.00 14.90 Contribution Margin $ 14.90 $ 9.90 $ 20.40