Overview
ACCT 2302 – Managerial Accounting ACCT 2302 Group Project Project Overview: This project requires your group to pick a product to “manufacture” with the use of the 3D printers in the Innovation Lab. Through the manufacturing and hypothetical selling of that product, you will explore many of the key concepts we have examined throughout our course content. Project Requirements: Step 1: Pick a product to “manufacture” using the 3D printers. Discuss with your group what product you would like to manufacture as your project. You can find ideas here: Small Quick Easy Fun Things to 3D Print When Bored and 101 Useful Practical Functional 3D Prints. Step 2: Manufacture at least one of that product at the Innovation Lab. You can create more, but you are required to make at last one. Step 3: While production of that product is taking place, complete the Project Documents file (tabs Job Order Cost Sheet, Materials Requisition, and Time Ticket) with the below guidance: Materials Requisition o Do some research or talk with the staff at the Innovation Lab about how much materials is being used for your production of this product and about how much that costs. Complete the form accordingly. o Any additional materials needed outside of the printing process to complete your finished product should be added here too. Time Ticket o Complete the employee time tickets for any additional direct labor once the production process has begun. For example, if you manufacture a key with the 3D printer and then put it on a key chain then your time assembling that key and key chain should be recorded here (and the cost of the key chain should be added to the materials requisition form). o Assume a wage rate of $7.25/direct labor hour. Job Order Cost Sheet o Transfer any information from the Materials Requisition and Time Ticket to the Job Order Cost Sheet. o Apply manufacturing overhead $1/machine hour (where machine hour relates to the number of hours the 3D printer ran for your job). o Calculate the total job cost and unit product cost to complete the form. Step 4: Complete the CVP Analysis tab in the Project Documents file. To do so: Pick a selling price for your product. For this portion, assume all of your manufacturing costs are variable, but you have selling costs of $15,000 and administrative costs of $5,000 which are both fixed. Complete the excel worksheet with formulas for every “?”
ACCT 2302 – Managerial Accounting Step 5: Complete the Flexible Budget Performance Report tab in the Project Documents file. Refer to Chapter 21 in your book for assistance. To do so: Assume your actual activity is your calculated break-even units from Step 4 plus 500 units. (Ex. If you calculated 1,000 units as your break-even then this would be 1,000 + 500 = 1,500) Use your information from Step 4 to fill in the revenue (selling price), cost of product, selling costs and administrative costs related to your business. Complete the flexible budget performance report by filling in formulas for every “?” Step 6: Assume your company is currently producing 500 units above your break-even point, but is considering buying your product from a wholesaler instead of manufacturing the item. Research how much it would cost to buy a similar product from a wholesaler, and walk through the make-or-buy decision process. Assume that if you chose to buy the product, selling and administrative costs would not change. Create a make-or-buy analysis similar to Exhibit 23.2 in Chapter 23 in your book. Do this on tab Make or Buy Analysis in the Project Documents file. Step 7: Showcase your manufactured item and present your findings to the class! Your PowerPoint presentation slides should address the below questions/topics: 1. What item did you manufacture? 2. What is the total job cost and unit product cost of your manufactured item? Walk us through what went into those calculations. 3. I told you to use $1/machine hour for applying manufacturing overhead. What kinds of costs did you observe at the Innovation Lab during the manufacturing process that might go into the manufacturing overhead rate? Which of those are fixed and which are variable? 4. What is your product selling price? How did you come up with that number? 5. Share the results of your CVP analysis—contribution margin/unit, contribution margin ratio, variable expense ratio, break-even in unit and dollar sales, and unit and dollar sales needed to attain a target profit of $100,000. 6. Share the results of your flexible budget performance report. Indicate whether each variance is favorable/unfavorable and a reason for each variance. 7. Share the results of your make-or-buy analysis—what are the relevant costs and irrelevant costs? Should the company make or buy? Project Deliverables: Each group will prepare a 10-15 minute presentation with PowerPoint slides that will be shared with the class on the last day of the semester (during finals). The following items are due with that presentation: Completed Project Documents file (tabs Job Order Cost Sheet, Materials Requisition, Time Ticket, CVP Analysis, Flexible Budget Performance Report & Make or Buy Analysis) in Excel PowerPoint slides for the presentation Project Group Participation Survey Grading: This assignment is worth 189 points, or 18.9% of your grade in this course.
ACCT 2302 – Managerial Accounting Your ability to meet the criteria as laid out above under Project Requirements will play a key role in determining your total points earned. Grammar, punctuation, spelling, etc. are a portion of your grade and, as such, you should be preforming a critical self-review (spell check, review, etc.) of your PowerPoint presentation and any other materials used. Any resources that you use to aid in preparation of your project should be given appropriate
credit through proper citations.PowerPoint Slides for Presentation (answer the following questions): Points
What item did you manufacture? 4 4 4 What is your product selling price? How did you arrive at that number? 4 8 8 8 Presentability of slides (grammar, punctuation, spelling, etc.) 5 Total points 45 What is the total job cost & unit product cost of your manufactured item? Walk through the calculations. What kinds of costs did you observe at the Innovation Lab during the manufacturing process that might go into the manufacturing overhead rate? Which of those are fixed and variable? Share CVP analysis results (contribution margin/unit, contribution margin ratio, variable expense ratio, break-even in unit and dollar sales, and unit and dollar sales needed to attain a target profit of $100,000.) Share the results of your flexible budget performance report & reasons for favorable/unfavorable variances Share the results of your make-or-buy analysis; which costs are relevant/irrelevant and should the company make or buy?