eBook Calculator Print Item 9. Prepare the August budgeted income statement, including selling expenses. Enter all amounts as positive Genuine Spice Inc. Budgeted Income Statement For the Month Ended August 31 Sales $ 150,000 hed goods inventory, August 17 $ 12,000 Direct materials inventory, August 17 392 Direct materials purchases 23,231 Direct materials inventory, August 31 248 Cost of direct materials for production 23,375 Direct labor 9,900 Factory overhead 19,735 53,010 Finished goods inventory, August 31 7,000 Cost of goods sold 58,010 Gross profit 91,990 Selling expenses 30,000 Income before income tax 61,990 O more Check My Work uses remaining All work saved. Email instructor (ozs.) (bottles) Estimated materials inventory, August 1 Desired materials inventory, August 31 (ozs.) 250 1,000 290 360 600 240 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none change in the cost per unit or estimated units per case operating data from January Required: 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 1,500 Desired ending inventory 175 Total units available 1,675 Estimated beginning inventory 300 Total units to be produced 1,375 Genuine Spice Inc. Direct Labor Cost Budget For the Month Ended August 31 Hours required for production of: Mixing Filling Total und and body lotion Hourly rate 458 18.00 8,244 $ $ 115 14.40 1,656 Total direct labor cost $ $ 9,900 8. Prepare the August factory overhead cost budget. If an amount box does not require an entry, leave it blank Factory overhead: Total Utilities Genuine Spice Inc. Factory Overhead Cost Budget For the Month Ended August 31 Fixed Variable 500 $ 275 14,000 4,300 660 19,460 $ 275 $ 775 Facility lease 14,000 Equipment depreciation 4,300 Supplies 660 7 Total $ 19,735 mehr are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case $2.00 9.00 100 ozs. Cream base Natural oils Variable Variable Variable $0.02 0.30 30 ozs. Bottle (8-oz.) 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Variable Time per Case 20 min. Labor Rate per Hour $18.00 Direct Labor Cost per Case Mixing $6.00 Filling Variable 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Utilities Mixed Facility lease Fixed Total Cost $600 14,000 4,300 660 $19,560 Equipment depreciation Fixed Supplies Fixed 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 Actual Direct Materials Price per Unit Quantity per Case Cream base $0.016 per oz. 102 oz Natural oils $0.32 per oz. 31 oz. Bottle (8-oz.) $0.42 per bottle 12.5 bottles Actual Direct Labor Rate Actual Direct Labor Time per Case Mixing Filling $18.20 14.00 19.50 min. 5.60 min Actual variable overhead $305.00 1,600 cases Normal volume 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, Required: 10. Determine the direct materials price and quantity variances for the three materials. Enter the costs in dollars and cents (carried to three decimal places when required). Enter all amounts as positive numbers. Direct Materials Price Variance Check My Work 10 more Check My Work uses remaining Book E Print Item Calculator rect Materials Price Variance: Cream Base Natural Oils Bottles Etual price $ 0.32 0.016 0.02 0.42 0.50 tandard price 0.30 ifference 0.004 0.02 0.08 ctual quantity (units) x 153,000 ozs. 46,500 oz. btls. X 18,750 $ 1,500.00 irect materials price variance $ 612.00 $ 930.00 ndicate if favorable or unfavorable Favorable Unfavorable Favorable mter the standard price to two decimal places. Direct Materials Quantity Variance: Cream Base Bottles Actual quantity oz. btls. Natural Oils 46,500 ozs. 45,000 1,500 oz. 153,000 150,000 3,000 Standard quantity 18,750 18,000 750 Difference ozs. btls. Standard price 0.02 X 0.30 0.50 Direct materials quantity variance $ 60.00 $ 450.00 375.00 Indicate if favorable or unfavorable Unfavorable Unfavorable Unfavorable 11. Determine the direct labor rate and time variances for the two departments. Do not round hours. Enter the costs in dollars and cents. Enter a numbers. Direct Labor Rate Variance: Mixing Department Filling Department Actual rate eBook Calculator Print Item Direct Labor Rate Variance: Mixing Department Filling Department Actual rate Standard rate Difference Actual time (hours) Direct labor rate variance Indicate if favorable or unfavorable Direct Labor Time Variance: Mixing Department Filling Department Actual time (hours) Standard time (hours) Difference Standard rate Direct labor time variance Indicate if favorable or unfavorable 12. Determine the factory overhead controllable variance. Enter all amounts as positive numbers. Actual variable overhead Variable overhead at standard cost Factory overhead controllable variance Indicate if favorable or unfavorable Check My Work 7 more Check My Work uses remaining eBook Print item Calculator 12. Determine the factory overhead controllable variance. Enter all amounts as positive numbers Actual variable overhead Variable overhead at standard cost Factory overhead controllable variance Indicate if favorable or unfavorable 13. Determine the factory overhead volume variance. Round rate to two decimal places and round your final answer to two decimal places. Enter all numbers. Normal volume (cases) Actual volume (cases) Difference Fixed factory overhead rate Factory overhead volume variance Indicate if favorable or unfavorable 14. The production volume of cases was planned at the beginning of August. The variances compare the actual cost and the standard cos for the month. Thus, the standard cost must be based on the units of actual production Footback 10. Direct Materials Price variance is the difference between the actual and standard prices multiplied by the actual quantity. Direct Materials Quantity variance is the the actual and standard quantities, multiplied by the standard price. What caused the price and quantity variances? 11. Direct Labor rate variance is the difference between the actual and standard hourly rates, multiplied by the actual hours. Direct Labor Time variance is the differenc actual and standard hours, multiplied by the standard rate per hour. What caused the rate and time variances? 12. 13. Factory Overhead controllable variance is the difference between the actual variable overhead and the standard variable overhead for actual units. (Use the hig determine the variable overhead.) Overhead volume variance is the difference between the normal production capacity and the actual units produced, multiplied by the Check My Work 7 more Check My Work uses remaining All work saved. Email Instructor Save and Exit Submit Ass