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1. Print this Document 2. Write your name at the top 3. Complete the assignment by hand 4. Scan the completed assignments 5. Submit the
1. Print this Document 2. Write your name at the top 3. Complete the assignment by hand 4. Scan the completed assignments 5. Submit the assignment though Canvas Genuine Spice Inc. began operations on January 1,2016. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12 bottle cases for $100 per case. There is a selling commission of $20 per case. The January dire materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Variable Variable Variable Units Cost per Unit $0.02 0.30 0.50 Direct Materials Cost per Case Cream base Natural oils Bottle (8-oz.) per Case 100 ozs. 30 ozs. 12 bottles $2.00 9.00 6.00 $17.00 DIRECT LABOR Cost Behavior Time per Case 20 min. Labor Rate Diret Labor per Hur Cost pe Department Variable 20 m Mixing Filling $18.00 14.40 $6.00 1.20 $7.20 Variable 25 min. FACTORY OVERHEAD Utilities Facility lease Equipment depreciation Supplies Cost Behavior Mixed Fixed Fixed Fixed Total Cost $600 14,000 4,300 660 $19,560 tof Genuine Spice Inc. wishes to determine the number of cases required ing information was gathered from the first six months of operation regarding this The managementThe utilities cost, which is part of factory overhead, is a mixed cost. to break even per The following cost
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