Comprehensive Problems Part Note: This action w a continuation from Part of the comprehensive problem. be sure you have completed Part A before attempting Part B. You may have to refer back to data presented in Port A and use answers from Port A when completing this section Genuine Spice Inc. began operations on January 1 of the current year. The company produces ent-ounce bottles of hand and boy lotion calied Eternal Beauty. The lation is sold wholesale in 12-bottle cases for $100 per case. There as selling commission of $20 per case. The January direct materials, direct laber, and factory overhead costs are as follows: Cost Per Unit DIRECT MATERIALS Cost Units Behavior per Case Variable 100 os 50.02 Variable 30 , 0.30 Variable 12 bottles 0.50 Creambase Natural oils Bottle (8-2) Direct Materials Cost per Case $2.00 9.00 6,00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 20 min $6.00 $18.00 14.40 Filling Variable 5 1.20 25 min $7.20 FACTORY OVERHEAD Uites Facility as Equipment depreciation Supplies Cost Behavior Total Cost Mixed $600 Fixed 14,000 Fixed 4.300 Fixed 660 $19,560 Part 3-August Budgets During July of the current year, the management of Genuine Solce Ine, asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory Case Cost 300 $12.000 Estimated finished goods inventory, August Desired finished goods inventory, August 31 175 7.000 Materials inventory Materials Inventory: Cream Base Oils (ots) Bottles hotties) timated materias viventory. Apus 1 Desreo materias mentary, August 250 1,000 240 There was negioibu work in prom. Mantory asumad to either the heining er end of the months thus, none was assumes. In addition, there was no change in the cost per una estimated units per case operating data from January Required: 5. Prepare the Augustation budget Enteral amounts as pasklembert 5. Prepare the August production budget. Enter all amounts as positive numbers. Genuine Spice Inc. Production Budget For the Month Ended August 31 Cases Expected cases to be sold Plus desired ending inventory Total units required Less estimated beginning inventory Total units to be produced