APPALOOSA COUNTYDAY CARE CENTER, INC. 1. COST AND PROFITABILITY ANALYSIS * Infant childcare• Toddler childcare• Pre-K childcare• Rent School district• Rent Head Start 2. 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 |