ACC 2-2 Milestone One: Cost Classification Assignment essay paper
ACC 2-2 Milestone One: Cost Classification Assignment
You plan to open a small business for manufacturingACC 2-2 Milestone One: Cost Classification Assignment 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)ACC 2-2 Milestone One: Cost Classification Assignment . 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
• One collar maker, who will be paid $16.00 per hour and work 40 hours per week
• One leash maker, who will be paid $16.00 per hour and work 40 hours per week
• One harness maker, who will be paid $17.00 per hour and workACC 2-2 Milestone One: Cost Classification Assignment 40 hours per week
• One receptionist, who will be paid $15.00 per hour and work 30 hours per week
Other Costs
• Rent: $750 per month; allocate based on square footage
• High-tensile strength nylon webbing—$12 per yard of webbing
o 3collarsperyardofwebbing
o 2leashesperyardofwebbing
o 2harnessesperyardofwebbing
• Polyester/nylon ribbons—$9 per yard of ribbon o 3collarsperyardofribbon
o 2leashesperyardofribbon
o 2harnessesperyardofribbon
• Buckles made of cast hardware—$0.50 per buckle
o 4bucklesusedpercollar
o 3bucklesusedperleash
o 8bucklesusedperharness
• 3 industrialACC 2-2 Milestone One: Cost Classification Assignment sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5- year life, zero salvage value)
• Utilities and insurance: $600 per month; allocate based on square footage
• Scissors, thread, cording: $1,200
• Price tags: ACC 2-2 Milestone One: Cost Classification Assignment $250 for 2,500 ($0.10 each)
• Office supplies: $2,400 or $200 per month
• Other business equipment: $2,000
• Loan payment of $550 per month
• Salary drawn of $500 per month
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The total square footage for the sewing rooms is 1,500 square feet broken into three areas (500 square feet each)ACC 2-2 Milestone One: Cost Classification Assignment . 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
• One collar maker, who will be paid $16.00 per hour and work 40 hours per week
• One leash maker, who will be paid $16.00 per hour and work 40 hours per week
• One harness maker, who will be paid $17.00 per hour and workACC 2-2 Milestone One: Cost Classification Assignment 40 hours per week
• One receptionist, who will be paid $15.00 per hour and work 30 hours per week
Other Costs
• Rent: $750 per month; allocate based on square footage
• High-tensile strength nylon webbing—$12 per yard of webbing
o 3collarsperyardofwebbing
o 2leashesperyardofwebbing
o 2harnessesperyardofwebbing
• Polyester/nylon ribbons—$9 per yard of ribbon o 3collarsperyardofribbon
o 2leashesperyardofribbon
o 2harnessesperyardofribbon
• Buckles made of cast hardware—$0.50 per buckle
o 4bucklesusedpercollar
o 3bucklesusedperleash
o 8bucklesusedperharness
• 3 industrialACC 2-2 Milestone One: Cost Classification Assignment sewing machines at $3,300 each for a total of $9,900; depreciation is $165 per month (5- year life, zero salvage value)
• Utilities and insurance: $600 per month; allocate based on square footage
• Scissors, thread, cording: $1,200
• Price tags: ACC 2-2 Milestone One: Cost Classification Assignment $250 for 2,500 ($0.10 each)
• Office supplies: $2,400 or $200 per month
• Other business equipment: $2,000
• Loan payment of $550 per month
• Salary drawn of $500 per month
1
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