Assignment
You plan to open a business manufacturing collars, leashes, and harnesses for pets. To begin, you will manufacture these in a standard style and size with plans to expand your range over the year. You will present your company's financial strategy to some key investors. To begin creating your strategy, you need to consider and record all the costs associated with operating your business. You have decided to use the job order costing system.
Prompt
Use the given operational costs in the Milestone One Operational Costs Data Appendix Word Document to complete the first two tabs, "Cost Classification" and "Variable and Fixed Costs," in the Project Workbook Spreadsheet.
Milestone: Operational Costs Data Appendix
You plan to open a small business for manufacturing pet collars, leashes, and harnesses. You have found a workshop space you can use for sewing your products. After some research and planning, you have estimates for the various operating costs for your business.
The total square footage for the sewing rooms is 1,500 square feet broken into three areas (500 square feet each). You have taken out a loan for start-up costs, and the monthly payment is $550; it goes into effect immediately and should be accounted for in your costs. You will also collect a modest salary for the first year of $500 per month; remember to divide evenly among the services.
Salary and Hiring Data
1. One collar maker,who will be paid $16.00 perhour and work 40 hours per week
2. One leash maker, who will be paid $16.00 perhour and work 40 hours per week
3. One harness maker, who will be paid $17.00 perhour and work 40 hoursper week
4. One receptionist, who will be paid $15.00 perhour and work 30 hours per week
Other Costs
1. Rent: $750 permonth; allocate based on square footage
2. High-tensile strength nylon webbing-$12 per yard of webbing
a. 3collars per yard of webbing
b. 2 leashes per yard of webbing
c. 2 harnesses per yard of webbing
3. Polyester/nylon ribbons-$9 per yard of ribbon
a. 3 collars per yard of ribbon
b. 2 leashes per yard of ribbon
c. 2 harnesses per yard of ribbon
4. Buckles made of cast hardware-$0.50 per buckle
a. 4 buckles used per collar
b. 3 buckles used per leash
c. 8 buckles used per harness
5. 3 industrial sewing machines at$3,300 each for a total of $9,900; depreciation is $165 permonth (5-year life, zero salvage value)
6. Utilities and insurance: $600 permonth; allocate based on square footage
7. Scissors, thread, cording: $1,200
8. Price tags: $250 for 2,500 ($0.10 each)
9. Office supplies: $2,400 or $200 per month
10. Other business equipment: $2,000
11. Loan payment of $550 per month
12. Salary drawn of $500 per month.
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.
Attachment:- Project-Workbook.rar