10:4) - LTE 2 ) Better By the Numbers began operations on January 1, 2018. The company produces eight- ounce bottles of hand and body lotion called Radiant One. The lotion is sold wholesale in 12 bottle cases for $95 per case. There is a selling commission of $20 per case. January 2018 direct materials, direct labor and factory overhead costs are as follows: DIRECT MATERIALS Cost Units per Cost per Behavior Case unit variable 100 oz. $ 0.06 variable 30 OZ. $ 0.34 variable 12 bottles $0.60 Direct Materials Cost per Case $ 6.00 112.00 Nutrient base Essential oils Bottle (8-oz.) 7.20 $25.20 Department Cost Behavior variable variable DIRECT LABOR Time per Labor Rate Case per Hour 15 min. $ 20.00 6 min $15.50 21 min. Mixing Filling Direct Labor Cost per Case $ 5.00 1.55 $ 6.55 21 min. 56.55 FACTORY OVERHEAD Cost Behavior Total Cost Utilities mixed $ 600 Facility lease fixed 14,000 Equipment depreciation fixed 4,300 Supplies fixed 512 $ 19,412 Part B: AUGUST BUDGETS August demand is expected to be 1,500 cases at a sales price of $100 per case. Inventory planning information follows: Estimated finished goods inventory, Aug. 1* 280 cases $12,880 Desired finished goods inventory, Aug. 31* 175 cases $ 7,719 Estimated materials inventory, Aug. 1st Desired materials inventory, Aug. 31 Nutrient Base 350 oz. 600 oz. Oils 280 oz. 180 oz. Bottles 100 72 Work in process inventory was negligible, so none is assumed There is no change in cost data from January. Requirements: 5. Prepare a Production Budget for August 6. Prepare a Direct Materials Purchase Budget for August 7. Prepare a Direct Labor Budget for August. (round hours required for production to the nearest whole hour) 8. Prepare a Factory Overhead Budget for August 9. Prepare a Budgeted Income Statement, including selling expenses, for August