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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

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 Units
per Case Cost
per Unit Direct Materials
Cost per Case
Cream base Variable 100 ozs. $0.02 $2.00
Natural oils Variable 30 ozs. 0.309.00
Bottle (8-oz.) Variable 12 bottles 0.506.00
$17.00
DIRECT LABOR
Department Cost
Behavior Time
per Case Labor Rate
per Hour Direct Labor
Cost per Case
Mixing Variable 20 min. $18.00 $6.00
Filling Variable 514.401.20
25 min. $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 CAugust 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 ozs.
Natural oils $0.32 per oz.31 ozs.
Bottle (8-oz.) $0.42 per bottle 12.5 bottles
Actual Direct Labor
Rate Actual Direct Labor
Time per Case
Mixing $18.2019.50 min.
Filling 14.005.60 min.
Actual variable overhead $305.00
Normal volume 1,600 cases
The prices of the materials were different than standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing 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. 13. Determine the factory overhead volume variance. Round rate to two decimal places and round your final answer to two decimal places. Enter all amounts as positive numbers.
Normal volume (cases) fill in the blank 65
Actual volume (cases) fill in the blank 66
Difference fill in the blank 67
Fixed factory overhead rate $fill in the blank 68
Factory overhead volume variance $fill in the blank 69
Indicate if favorable or unfavorable
14. The production volume of fill in the blank 71 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 fill in the blank 73 units of actual production.

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