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Comprehensive Problem 5 Part C: Note: This section is a continuation from Parts A and B of the comprehensive problem. Be sure you have

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Comprehensive Problem 5 Part C: 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 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 Cost Behavior Cost Direct Materials Units per Case per Unit Cost per Case Cream base Variable 100 ozs. $0.02 $2.00 Natural oils Bottle (8-oz.)) Variable 30 02. 0.30 9.00 Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Direct Labor Cost Department Mixing Filling Behavior Variable Variable Time per Case Labor Rate per Hour Cost per Case 20 min. $18.00 $6.00 5 min. 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD. Check My Work 5 more Check My Work uses remaining Previous

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