InstructionsThe data for this milestone will be made available after you submit Milestone Two. This is your final milestone assignment in which you will submit your completed Project Workbook. You will use the information from this workbook for your course project in Module Seven.Submit your assignment here. Make sure you’ve included all the required elements by reviewing the requirements and rubric.Milestone One – Cost ClassificationINSTRUCTIONS:Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs.The Fixed and Variable cost classifications have been provided for you.Item/CostDirectMaterialDirectLaborOverheadPeriod CostsFixedVariableSalary – Collar makerxSalary – Leash makerxSalary – Harness makerxSalary – ReceptionistHigh-tensile strength nylon webbingxPolyester/nylon ribbonsxBuckles made of cast hardwarexDepreciation on sewing machinesxRentxUtilities and insurancexScissors, thread, and cordingxPrice tagsxOffice suppliesOther business equipmentLoan paymentxSalary to selfxACC 202 Milestone Three: Actual Costs and Revenue Data AppendixAt the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same.For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month:Materials purchased: $20,000 Consumed 80% of the purchased materialsDirect labor: $8,493Overhead costs: $3,765Note: Assume that the beginning materials and ending work in process are zero for the month.Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for weekends and other holidays, there were 20 business days in the first month of operation. For example, if you chose a sales price of $20 per collar, the actual number of collars sold in the month was 33 per day or 33 x 20 = 660 per month. Established Sales PriceNumber of Items Sold per DayCollars$20 33$24 28$28 23Leashes$22 28$26 23$30 18Harnesses$25 25$30 22$35 20The other costs incurred by the business include:General and administrative salariesReceptionist: $1,950Office supplies: $200Other business equipment: $150VarianceAt the end of the month, you find that the labor and materials spent on manufacturing collars was different from what you estimated:The collar maker had to work nine hours a day instead of eight due to an increased demand for collars. Because of the increased demand, the hourly rate you paid your employee for making the collars increased to $16.50. An increase in the cost of raw material led the direct material cost per collar to increase to $10.However, you also made and sold 60 more collars than you expected to sell in the month.You now need to determine the variance in the materials and labor cost from what you estimated in Milestone Two based on the market research data.