appaloosa county day care center, inc
DESCRIPTION
Appaloosa county day care center, incTRANSCRIPT
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APPALOOSA COUNTY DAY CARE CENTER, INC.
Florida Memorial UniversityBus 501 Accounting for Management
Fall 2011Dr. Rosalie C. Hallbauer
A. Wesley HemmansMary SaddlerGerald Turner
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1. COST AND PROFITABILITY ANALYSIS
• Infant childcare • Toddler childcare• Pre-K childcare • Rent - School district • Rent - Head Start
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2A -IDENTIFY DIRECT COSTS
Labor costs are the only direct costs associated with the programs.
• Food costs would be direct costs to the kitchen area but indirect to the end services.
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2B- WHICH COSTS WOULD BE ORGANIZATION OR FACILITY
• The costs that would be considered to be organization-sustaining costs include depreciation, building insurance, and interest expense on the mortgage debt.
• Both ACDC and the tenants use the facility and, thus, should participate in the costs associated with acquiring the space.
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3. ASSIGN COSTS FROM TABLE 2
• Occupancy costs – Indirect • Employee Support costs
• General & Administrative costs • Program Support costs
• Occupancy costs – Building Usage • Wage Expenses – Direct
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4. IDENTIFY THE COST DRIVERS THAT HAVE A CAUSAL RELATIONSHIP
Cost Pool Cost Driver
Occupancy costs–Indirect Square footage
Employee support costs Number of ACDC program employees*
General & administrative costs Total number of children enrolled
Program support costs Total daily population at ACDC*
Occupancy costs–Building usage
Total daily population in building*
Wages expenses–Direct Number of employees assigned to rooms
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5. COST-DRIVER
Cost Pool Total Cost Driver Capacity
Activity Rate
Occupancy – Indirect $ 25,745 8,000 $ 3.22
Employee costs 850 12 70.83
General & admin. costs 22,295 78 285.83
Program costs 18,955 59 321.27
Occupancy—Building usage 13,850 123 112.60
Wages – Direct 94,255
Total Cost $175,950
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6-REVENUE AND COST ASSIGNMENTS
Pool Costs
Activity Rate
Infant Care
Toddler Care Pre- K Care
School District Head Start Total
$28,530
$68,710
$4,200
$6,360
$107,800
Revenues
1 Square Footage 25,745
$ 3.22
850
2,735
1375
4,425 1375
4,425 1750
5,632 2650
8,528 8000
25,745
2 Total number of staff
850
$ 70.83 3
213 5
354 4
283 0
- 0
- 12
850
3 Total number of children
22,295
$ 285.83 11
3,144 35
10,004 32
9,147 0
- 0
- 78
22,295
4 Avg daily staff/child pop
18,955
$ 321.27 10
3,213 26
8,353 23
7,389 0
- 0
- 59
18,955
5 Avg pop of programs
13,850
$ 112.60 10
1,126 26
2,928 23
2,590 18
2,027 46
5,180 123
13,850
6 Wage- direct allocation
94,255
20,915
41,830
31,510
94,255
Total costs
31,346
67,894
55,344
7,659
13,708
175,950
($2,816) $816
$7,306
($3,459)
($7,438) ($5,500)
Net income/(loss) per Prog
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7A-PROFITABLE PROGRAMS
• Toddler care
• Pre-K care.
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7B- UNPROFITABLE PROGRAMS
• Infant care
• School district tenant
• Head Start tenant
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IMPROVING PROFITABILITY
• The center could raise the childcare rate of the infant care.
• The center could eliminate the infant care program
• Another possible action is to raise the rates for the leased rooms.