Managerial Accounting
Milestone One, Two, and Three.
Cost Classification, Cost-Volume-Profit Analysis, and Variance Analysis
with Formulas
, Explanations:
Collars: Variable Cost/Item
› Polyester/nylon ribbons: ($9/3)= 3.00
› Buckles made of cast hardware: ($4*0.5)= 2.00
Fixed Costs:
› Collar maker’s salary (monthly): (16*40)*52/12 = $2,733.33
› Depreciation on sewing machines: (165/3) = $55
› Rent: (750/150)*500 = $250
› Utilities and insurance: (600/1500)*500 = $200
› Scissors, thread, and cording: (1200/3) = $400
› Loan payment: (550/3) = $183.33
› Salary to self: (500/3) = $166.67
Explanation:
Leashes: Variable Cost/Item
› High-tensile Strength nylon webbing: ($12/2) = 6.00
› Polyester/nylon ribbons: ($9/2))= 4.50
› Buckles made of cast hardware: ($3*0.5)= 1.50
Fixed Costs:
› Leash maker’s salary (monthly): (16*40)*52/12 = $2,733.33
› Depreciation on sewing machines: (165/3) = $55
Milestone One, Two, and Three.
Cost Classification, Cost-Volume-Profit Analysis, and Variance Analysis
with Formulas
, Explanations:
Collars: Variable Cost/Item
› Polyester/nylon ribbons: ($9/3)= 3.00
› Buckles made of cast hardware: ($4*0.5)= 2.00
Fixed Costs:
› Collar maker’s salary (monthly): (16*40)*52/12 = $2,733.33
› Depreciation on sewing machines: (165/3) = $55
› Rent: (750/150)*500 = $250
› Utilities and insurance: (600/1500)*500 = $200
› Scissors, thread, and cording: (1200/3) = $400
› Loan payment: (550/3) = $183.33
› Salary to self: (500/3) = $166.67
Explanation:
Leashes: Variable Cost/Item
› High-tensile Strength nylon webbing: ($12/2) = 6.00
› Polyester/nylon ribbons: ($9/2))= 4.50
› Buckles made of cast hardware: ($3*0.5)= 1.50
Fixed Costs:
› Leash maker’s salary (monthly): (16*40)*52/12 = $2,733.33
› Depreciation on sewing machines: (165/3) = $55
