Better By the Numbers began operations on January 1, 2018. The ounce bottles of hand and body lotion called Radiant One. The lo bottle cases for $100 per case. There is a selling commission of V 1, 2018. The company produces eight- adiant One. The lotion is sold wholesale in 12- Is a selling commission of $20 per case. a factory overhead costs are as follows: January 2018 direct materials, direct labor and factory overhead costs are Nutrient base Essential oils Bottle (8-oz.) DIRECT MATERIALS Cost Units per Cost per Behavior Case unit variable 100 oz. $ 0.02 variable 30 oz. $ 0.30 variable 12 bottles $ 0.50 Direct Materials Cost per Case $ 2.00 9.00 6.00 $ 17.00 Department Cost Behavior Mixing Filling variable DIRECT LABOR Time per Labor Rate Case per Hour 20 min. $ 18.00 5 min. $ 14.40 25 min. Direct Labor Cost per Case $ 6.00 1.20 $ 7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities mixed $ 600 Facility lease fixed 14,000 Equipment depreciation fixed 4,300 Supplies fixed 660 $ 19,560 Part C: AUGUST VARIANCE ANALYSIS After August was completed, variance analysis needs to be performed. January operating data provided the standard prices, rates. times, and quantities per case: There were 1,500 actual cases produced during August, 250 more than planned at the beginning of the month. Actual August data: Actual Direct Materials Price per Unit Nutrient base Essential oils Bottle (8-oz.) $0.016 per oz. $0.32 per oz. $0.42 per bottle Actual Direct Materials Quantity per Case 102 ozs. 31 ozs. 12.5 bottles Actual Direct Labor Time per Case 19.5 min. 5.6 min. Actual Direct Labor Rate $ 18.20 $ 14.00 Mixing Filling The standard quantity of materials used per case was an ideal standard. Actual Variable Overhead was $305 Standard (Budgeted) Volume was 1,600 cases Requirements: 10. Determine and interpret (favorable/unfavorable) the direct materials price and quantity variances for each of the three materials 11. Determine and interpret the direct labor rate and time variances for the two departments, rounding hours to the nearest hour 12. Determine and interpret the factory overhead controllable variance 13. Determine and interpret the factory overhead volume variance UULURUOO Part 10. Direct Materials Price Variance: V odsto. Nutr! BASE Essen OILS BOTTLES Direct Materials Quantity Variance: Nutr.gSE Essm, OILS BOTTLES 11. Direct Labor Rate Variance: MIXING DEPARTMENT FILLING DEPARTMENT Direct Labor Time Variance: MIXING DEPARTMENT FILLING DEPARTMENT 12.Factory Overhead Controllable Variance: 13.Factory Overhead Volume Variance