Managerial Accounting: Milestone 1

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
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)

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