BEGGING FOR HELP PLEASE!
B eBook Calculator Print Item 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 eight-ounce bottles of hand and body lotion 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 direct materials, direct labor, and factory overhead costs are as OWS: DIRECT MATERIALS Units Cost Cost Behavior Direct Materials Cost per Case per Case per Unit Cream base Variable 100 oz. $0.02 $2.00 Natural oils Variable 30 os 0.30 9.00 Bottle (8 oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Cost Direct Labor Labor Rate Department Time per Case Behavior per Hour Cost per Case $6.00 $18.00 Variable 20 min Mixing 1.20 14.40 5 Variable Filling $7.20 25 min FACTORY OVERHEAD Previous Check My Work 1 more Check My Work uses remaining Save and Ex Submit Assignment for Grad All work saved OP 2/10/20 A a E e II donlocator Binprogress-false eBook Calculator Printem FACTORY OVERHEAD Cost Behavior Utilities Total Cost Mixed $600 Facility lease Equipment depreciation Fixed 14,000 Fixed 4,300 Supplies Fixed 660 $19,560 Part C-August Variance Analysis 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, times, and quantities 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: Actual Direct Materials Price per Unit Actual Direct Materials Quantity per Case Cream base $0.016 per oz. 102 oz 31 oz $0.32 per oz. Natural oils 12.5 bottles $0.42 per bottle Bottle (8-oz.) Actual Direct Labor Rate Actual Direct Labor Time per Case Previous heck My Work 1 more Check My Work uses remaining Submission for Geading All work saved 97 a eBook Calculator Printem Actual Direct labor Rate Actual Direct lalo Time per Case Mixing $18.20 19.50 min Filling 14.00 5.60 min Actual variable overhead $305.00 Normal volume 1,600 cases The prices of the materials were different from standard due to fluctuations in market prices. The standard quantity of materials used percase was an ideal standard. The Mooing Department used a higher grade labor classification during the month, thus causing the actual labor rate to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard.
