appaloosa county day care center, inc
DESCRIPTION
Appaloosa county day care center, incTRANSCRIPT
APPALOOSA COUNTY DAY CARE CENTER, INC.
Florida Memorial UniversityBus 501 Accounting for Management
Fall 2011Dr. Rosalie C. Hallbauer
A. Wesley HemmansMary SaddlerGerald Turner
1. COST AND PROFITABILITY ANALYSIS
• Infant childcare • Toddler childcare• Pre-K childcare • Rent - School district • Rent - Head Start
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.
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.
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
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
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
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
7A-PROFITABLE PROGRAMS
• Toddler care
• Pre-K care.
7B- UNPROFITABLE PROGRAMS
• Infant care
• School district tenant
• Head Start tenant
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.