12. Determine and interpret the direct labor rate and time variances for the two departments. FACTORY OVERHEAD \begin{tabular}{lcr} \hline & Cost Behavior & Total Cost \\ \hline Utilities & Mixed & $600 \\ Facility lease & Fixed & 14,000 \\ Equipment depreciation & Fixed & 4,300 \\ Supplies & Fixed & 660 \\ & & $19,560 \\ \hline \end{tabular} Note: This section is a continuation from Parts A and B of the comprehensive problem. Be sure you have completed Parts A and B before attempting Part C. You may have to refer back to data presented in Parts A and B as well as use answers from those parts when completing this section. Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8 -ounce bottles of hand and body lotion called Eterna/ Beauty. The lotion is sold wholesale in 12 -bottie cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as followis: DIRECT LABOR Enter subtracted amounts with minus sign. Enter a favorable varlance as a negative number using a minus sign and an unfavorable variance as a positive number: 10. Determine and interpret the direct materials price and quantity variances for the three materials. Enter the costs in dollars and cents (carried to three decimal places when required). During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, dimes, and quanties per case. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the beginning of the month, Actual data for August were as follows: The prices of the materiais were different than standerd due to fiuctuotions in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Deportment used a higher grade labor classification dunng the month, thus causing the actual labor rate to exceed standard, The faling Department used a lawer grade lathor classification during the month, thus caising the actuat labor cate to be less than standard. 14. The production volume of cases was planned at the beginning of August. The variances compare the actual cost and the standard cost of for the month. Thus, the standard cost must be based on the units of actual production