Comprehensive Problem 5 Part A: Note: You must complete part A before completing parts B and C. Genuine Spice Inc. began operations on January 1, 2014. 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 direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cream base Natural oils Bottle (8-oz.) Cost Behavior Variable Variable Variable Units per Case 100 ozs. 30 ozs 12 bottles Cost per Unit $0.02 0.30 0.50 Direct Materials Cost per Case $ 2.00 9.00 6.00 17.00 DIRECT LABOR Labor Rate per Hour $18.00 14.40 Direct Labor Cost per Case $6.00 1.20 7.20 Time per Case Department Mixing Filling Cost Behavior Variable Variable 20 min 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