Genuine Spice in began operations on January 1 of the curent year. The company produces sigh-ounce bomes of hand and body lotion cated Emal Beauty The soon is sold wholesale in 12-bo sing commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as flow DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per Case Creambas Vanable 100 or $0.02 $200 Natural oils Vanable 3002 0:30 9.00 Borde (-) Vanat 12 bo 0.50 6.00 $17.00 DIRECT LABOR Department Cust Behavior Time per Case Labor Rate per Hour Cost per Case Mang Vatable 20 min $10.00 $6.00 Fang Variable 5 14.40 1.20 25 m $7.20 FACTORY OVERHEAD Cost Behavior Total Cost V 1600 Facility 14,000 Equipment depreciation Food 4.000 Supple Food 660 $15.500 Part A-Break Even Analysis of factory overhead sa med coat. The blowing infor The management of Genuine Spice Inc wants to determine the number of cases required t months of operation regarding this cost Case Production Utility Total Cost January 500 5000 February 800 600 March 1200 740 Apri 1,100 720 May 950 690 June 1,025 705 Required-Part A 1. Determine the land cable portion of the unity cost using the big method. Do not round your intermediate calculations and round variable cost per unit answers to two decimal places 2. Det the con un marc per case. Do not round your intermediate calculations and round your final answer to two decimal places. 3. Determine the fad costs per month, including the unity fixed cost from partit) 4. Determine the even number of cases perm Part B-August Budgets During July of the current year, the management of Genuine Spict inc asked the controller is prepare August manufacturing and income stanement budgens. Demand was expected to be 1500 cases t planning information is provided as w Fished Goods Cases Cost 300 $12.000 Estimated finished goom inventory August Desired red goosventory August 31 175 7,000 Cream Ba Ots Bottles je 250 290 000 Estimated mates intory August 1 Desired matisoryugust 31 1,000 380 There was neige work in process inventory assumed for either the beginning or e unitor esmara una per Requind-Part Pre the August production budget Prepare Audemars purchases budget Round unit price answers to two decimal places Prepare the Augustarect labor cost bumper Round the hours required for production to the nearest hour ay by ONOW' 9. Prepare the August budgeted income statement including saling expenses NOTE because you are not required to prepare of goods sold budget the cost of goods sold calculations will be part of the budg ranuras pover Pan-August Variance Analysis During September of the ouers year, the controler was asked to perform vartance analyses for Auguel The January persong data provided the standard proses mas and quantes por c produced in August, which was 250 more cases than planned at the beginning of the mann. Actua data for Aug Actual Direct Materials Price per Unit Quantity per Cass Cream $0.016 per 102 Natural o 10:32 p 3106 -)10 42 per bote Actual Direct Laborals Mang 310.20 Fang 14:00 Adual variable ve $300.00 The prices of the mates were different from standard due to fluctuations in market prices. The standard quanty if malenas uted per case was an ideal standart The Mang Departhed a big monthus casing the actual labor rate to exceed standard. The Fileg Department used a lower grade labor classification during the month, thus causing the actual abor hard Required-Part C 10. Den anderpret the direct materials price and quantity yanances for the three maturats Round your answers to three decimal places Enter a favorable variance as a negative amount and an unfavorable variance as a positive and 11. Desene anderpret the direct labor rate and time venances for the two departments Round hours to the nearest tenth of an hour 12. Determine and interpret the factory overhead controlable vanane 13. De and internet the factory over 14 Why are the standard direct labor and direct manas cos in the computations for parts (10) and (1) based on the actuar 1500-case production volume rather than the placed 375 cases of production used in the budget for parts and 17 Amount Descriptions Amon Deactions Part Controlate variab Materials Invertory 12.5 Actual Direct Labor Time par Ca 19.50m 500m mus none was assumed in addition, there was no change in the cost Facility Supple UNAWE Questions (PA) termine the red endast portion of the unity cost using the bod Da netround your intermediate atulations and round variable cost per and answers to two decimal p At High Point At Low P Verpun E $ S $ 1 $ 2 Detector Damat mund your intermediate calculations and round your final answer to two decimal places 3Demed cost permohouding the ty tad and co Det treven number of cases permo CH Production Budget Prepare the Aupit production budget Enter at atmints as patvers Gene Spicehc Farthe Marth Ended August 31 Cases Lass Direct Matenals Purchases Budget 6. Prepare the August det mara purchases budget Enter all amous as poate numbers Round unit price answers to be decimal places Gene Spice Direct Materials Purchase Budget For the Month Ended Augint 31 vance Cream Base) Naturelles) PM Total units required Direct Labor Cost tud 7. Presere the Augal direct labor cuar budget Round the hours required for production to the nearest hour Er Alanou Gene Spice Direct Labor Cast Budget For the Moth Ended August 21 Mixing Filling Factory Overhead Cost Budget Genuine Spice Inc. Factory Over Cost Budget For the Manth Ended August 31 Variable Tatal Factory o Us Facily ease Cment depreciation Supples Total is Budgeted income Sortement Prepare the August budgeted come statement including selling expenses Emerallaounts as positive numbers NOTE Because you are not s part of the budged income statement Genuine Spice Inc Fer the Manh Dided August 31 Revenue from sales Finated goods viventory August 1 5 Fixed S umbers Total d to prepare a cost of goods and budget, the Direct Dit mainoy August $ Direct matens purchases Cost of direct materials available for S Cost of direct malas placed in production Director Factory Cof goods are Cost of nahe goods available for sale Lesshed goods very August 21 Cast of goods Gr Selings S Income before income tax Variance Analysis (Parc) 10 Date and at the rectinatial price and quayanances for the three materials Round your answers to three decat places Enter a favor posta Direct Materials Pri Cream Ba NO Bottes $ Difference S Det materias price vanance Bume Difference S Directmana quantity verance 3 The Buduation amoun Difference $ $ $ Direcar Matariats Quiantty Vairtanca Natural O Crean Base $ caused the direct malarial price vanances. Al the quantity karances we Direct Lator Rate Varunce $ S amour and negative aunt and Direct labor rate variance Difference X Direct labor time variance S S The change in the caused the labor rate vanances. This change have been responsible for the direct labor time variance 12. Determine and interpret the factory overheed controllable variance. Enter a favorable variance as a negative amount and an unfavorable variance as a positive amount Factory Overhead Controllable Variance 5 Factory overhead controllable vanance The factory overhead controllable variance was caused by the variance in positive amour 13. Determine and interpret the factory overhead volume variance. Round rate to four decimal places. Enter a favorable variance as a negative amount and an unfavorable variance Factory Overhead Volume Variance Normal volume (cases) Actual volume (cases) Difference x $ $ Factory overhead volume variance The volume variance indicates the cost of 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1.000-case production volume rather than the planned 1,375 cases of produc and (7)? $ Direct Labor Time Variance Mixing Department Filling Department cons cases One Spice began operations on January 1 of mecument year. The company produces gros of hand and called sebing commission of 820 per case. The Januaryd mae tractor and factory ove for DIRECT MATERIALS $100 per case. Cost Behar Units per Case Cost per Unit Cost per Ca $2.00 Creanas Ve 100 9.00 No Va 300 0:30 Bote (8) V 6.40 $17.00 DIRECT LABOR Department Cost Behavior Time par Case Leber Rate per Hour Cest per Ca Verable $18.00 20 min Maing $4.00 Falling Vacati 1.20 14.40 6 $7.20 25 min FACTORY OVERHEAD Cost Behavior Total Cost Unite 1000 Facity 4.300 Supplies 660 $19.500 Part A-Break Even Analysis The loowing ea The management of Genuine Spice inc warts to determine the number of s x months of operation regarding this cost Case Production Utility Total Cost January 500 5000 February 800 600 March 1,200 740 Apr 1,100 720 May 950 000 Jute 1,025 705 Required-Part A 1. Demine the Exed and saciat portion of the utility car using the bad De net round your intermediate calculations and round variable cost per unit answers to two decimal places 2. Determine the stomar per case Do not round your intermediate calculations and round your final awar) places 3. Det the fed costs per more including the utility and cost from part De the brea-even number of cases per month Part 8-August Budgets During y of the curent year the management of Genuine Spice inc asked the correr to prepare Augal maning and income sementes Demand was expaced to be 1.500 cases an planning information is provided as fotos per case for "AUS" es Questions (Part A 1. Determine the feed and vacable portion of the alty cost using the heat low method. Do not round your intermediate calculations and round variable cost per unit answers to two decimal places. At High Point At Low Point Variable cont per un 5 Total Exed cost Tutal cost 2 Detere the contribution.maran per case De not round your intermediate calculations and round your final answer to two decimal places, S 1 Determine the fixed cuts per month, including the utility fixed cost from part (1) 3. Determine the fixed costs per month, including the utility fixed cost from part (1) 1 Total fixed costs: 2 6 4. Determine the break-even number of cases per month. 3 4 5 cases 5. Prepare the August production budget. Enter all amounts as positive numbers. Genuine Spice Inc. Production Budget For the Month Ended August 31 Cases Plus Total cases required Less 6 Prepare the August direct materials purchases budget Enter all amounts as positive numbers Round unit price answers to two decimal places. Genuine Spice Inc. Direct Materials Purchases Budget For the Month Ended August 31 Bottles (bottles) Plus Total units required Less Total materials to be purchased - X S $ Cream Base (oz.) $ $ Natural Oils (oz.) $ Total Direct Labor Cost Budget 7. Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour. Enter all amounts as positive numbers Genuine Spice Inc. Direct Labor Cost Budget For the Month Ended August 31 Mixing Filling $ X $ $ $ Total Factory Overhead Cost Budget 8. Prepare the August factory overhead cost budget Enter all amounts as positive numbers. If an amount box does not require an entry, leave it blank (Entries of zero (0) will be cleared automatically by CNOW) Genuine Spice Inc. Factory Overhead Cost Budget For the Month Ended August 31 Variable Total Factory overhead Utilities $ Facility lease Equipment depreciation Supplies Total $ $ Fixed Budgeted Income Statement 9 Prepare the August budgeted income statement, including selling expenses. Enter all amounts as positive numbers NOTE Because you are not required to prepare a cost of goods se budget, the cost of goods sold calculations will be part of the budgeted income statement Genuine Spice Inc. Budgeted Income Statement For the Month Ended August 31 Revenue from sales $ Finished goods inventory, August 1 $ Direct materials Direct materials inventory, August 1 Direct materials purchases Cost of direct materials available for use Less direct materials inventory, August 31 Cost of direct materials placed in production S $ $ Budgeted Income Statement trece materiais divertiorgast Direct materials purchases Cost of direct materials available for use $ Less direct materials inventory, August 31 Cost of direct materials placed in production $ Direct labor Factory overhead Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, August 31 Cost of goods sold Gross profit Selling expenses Income before income tax $ Variance Analysis (Part 6) 10 Determine and interpret the direct materials price and quantity vanances for the three materials Round your answers to three decimal places. Enter a favorable vanance as a negative amount, and an unfavorable vwance as a positive amount Direct Materials Price Variance Cream Base Natural Oils Bottles S $ Difference $ X Drect matemals price variance $ 4 Variance Analysis (Part C) DICLE CHGOF THE VATRICE Difference X Direct labor time variance The change in the labor classification standard labor time Direct Labor Time Variance Mixing Department Filling Department caused the labor rate variances. This change have been responsible for the direct labor time variance Vanance Analysis (Part C) 12. Determine and interpret the factory overhead controllable variance Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount Factory Overhead Controllable Variance $ Factory overhead controllable variance $ The factory overhead controllable variance was caused by the variance in Variance Analysis (Part C) 13. Determine and interpret the factory overhead volume variance. Round rate to four decimal places. Enter a favorable variance a Factory Overhead Volume Variance Normal volume (cases) Actual volume (cases) Difference Factory overhead volume variance $ The volume variance indicates the cost of a negative amount and an unfavorable variance as a positive amount 14 Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (17) based on the actual 1,500 case production volume rather than the planned 1,375 cases of production used in the budgets for parts () and (7) Vanabile costs of the budget must few to the actual or standard production volume, whichever is higher so that variances are compared across the same production volume Variable costs of the budget must ficx to the standard production volume so that variances are compared across the same production volume Variable costs of the budget must Bex to the actual production volume so that vanances are compared across the same production volume Genuine Spice in began operations on January 1 of the curent year. The company produces sigh-ounce bomes of hand and body lotion cated Emal Beauty The soon is sold wholesale in 12-bo sing commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as flow DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per Case Creambas Vanable 100 or $0.02 $200 Natural oils Vanable 3002 0:30 9.00 Borde (-) Vanat 12 bo 0.50 6.00 $17.00 DIRECT LABOR Department Cust Behavior Time per Case Labor Rate per Hour Cost per Case Mang Vatable 20 min $10.00 $6.00 Fang Variable 5 14.40 1.20 25 m $7.20 FACTORY OVERHEAD Cost Behavior Total Cost V 1600 Facility 14,000 Equipment depreciation Food 4.000 Supple Food 660 $15.500 Part A-Break Even Analysis of factory overhead sa med coat. The blowing infor The management of Genuine Spice Inc wants to determine the number of cases required t months of operation regarding this cost Case Production Utility Total Cost January 500 5000 February 800 600 March 1200 740 Apri 1,100 720 May 950 690 June 1,025 705 Required-Part A 1. Determine the land cable portion of the unity cost using the big method. Do not round your intermediate calculations and round variable cost per unit answers to two decimal places 2. Det the con un marc per case. Do not round your intermediate calculations and round your final answer to two decimal places. 3. Determine the fad costs per month, including the unity fixed cost from partit) 4. Determine the even number of cases perm Part B-August Budgets During July of the current year, the management of Genuine Spict inc asked the controller is prepare August manufacturing and income stanement budgens. Demand was expected to be 1500 cases t planning information is provided as w Fished Goods Cases Cost 300 $12.000 Estimated finished goom inventory August Desired red goosventory August 31 175 7,000 Cream Ba Ots Bottles je 250 290 000 Estimated mates intory August 1 Desired matisoryugust 31 1,000 380 There was neige work in process inventory assumed for either the beginning or e unitor esmara una per Requind-Part Pre the August production budget Prepare Audemars purchases budget Round unit price answers to two decimal places Prepare the Augustarect labor cost bumper Round the hours required for production to the nearest hour ay by ONOW' 9. Prepare the August budgeted income statement including saling expenses NOTE because you are not required to prepare of goods sold budget the cost of goods sold calculations will be part of the budg ranuras pover Pan-August Variance Analysis During September of the ouers year, the controler was asked to perform vartance analyses for Auguel The January persong data provided the standard proses mas and quantes por c produced in August, which was 250 more cases than planned at the beginning of the mann. Actua data for Aug Actual Direct Materials Price per Unit Quantity per Cass Cream $0.016 per 102 Natural o 10:32 p 3106 -)10 42 per bote Actual Direct Laborals Mang 310.20 Fang 14:00 Adual variable ve $300.00 The prices of the mates were different from standard due to fluctuations in market prices. The standard quanty if malenas uted per case was an ideal standart The Mang Departhed a big monthus casing the actual labor rate to exceed standard. The Fileg Department used a lower grade labor classification during the month, thus causing the actual abor hard Required-Part C 10. Den anderpret the direct materials price and quantity yanances for the three maturats Round your answers to three decimal places Enter a favorable variance as a negative amount and an unfavorable variance as a positive and 11. Desene anderpret the direct labor rate and time venances for the two departments Round hours to the nearest tenth of an hour 12. Determine and interpret the factory overhead controlable vanane 13. De and internet the factory over 14 Why are the standard direct labor and direct manas cos in the computations for parts (10) and (1) based on the actuar 1500-case production volume rather than the placed 375 cases of production used in the budget for parts and 17 Amount Descriptions Amon Deactions Part Controlate variab Materials Invertory 12.5 Actual Direct Labor Time par Ca 19.50m 500m mus none was assumed in addition, there was no change in the cost Facility Supple UNAWE Questions (PA) termine the red endast portion of the unity cost using the bod Da netround your intermediate atulations and round variable cost per and answers to two decimal p At High Point At Low P Verpun E $ S $ 1 $ 2 Detector Damat mund your intermediate calculations and round your final answer to two decimal places 3Demed cost permohouding the ty tad and co Det treven number of cases permo CH Production Budget Prepare the Aupit production budget Enter at atmints as patvers Gene Spicehc Farthe Marth Ended August 31 Cases Lass Direct Matenals Purchases Budget 6. Prepare the August det mara purchases budget Enter all amous as poate numbers Round unit price answers to be decimal places Gene Spice Direct Materials Purchase Budget For the Month Ended Augint 31 vance Cream Base) Naturelles) PM Total units required Direct Labor Cost tud 7. Presere the Augal direct labor cuar budget Round the hours required for production to the nearest hour Er Alanou Gene Spice Direct Labor Cast Budget For the Moth Ended August 21 Mixing Filling Factory Overhead Cost Budget Genuine Spice Inc. Factory Over Cost Budget For the Manth Ended August 31 Variable Tatal Factory o Us Facily ease Cment depreciation Supples Total is Budgeted income Sortement Prepare the August budgeted come statement including selling expenses Emerallaounts as positive numbers NOTE Because you are not s part of the budged income statement Genuine Spice Inc Fer the Manh Dided August 31 Revenue from sales Finated goods viventory August 1 5 Fixed S umbers Total d to prepare a cost of goods and budget, the Direct Dit mainoy August $ Direct matens purchases Cost of direct materials available for S Cost of direct malas placed in production Director Factory Cof goods are Cost of nahe goods available for sale Lesshed goods very August 21 Cast of goods Gr Selings S Income before income tax Variance Analysis (Parc) 10 Date and at the rectinatial price and quayanances for the three materials Round your answers to three decat places Enter a favor posta Direct Materials Pri Cream Ba NO Bottes $ Difference S Det materias price vanance Bume Difference S Directmana quantity verance 3 The Buduation amoun Difference $ $ $ Direcar Matariats Quiantty Vairtanca Natural O Crean Base $ caused the direct malarial price vanances. Al the quantity karances we Direct Lator Rate Varunce $ S amour and negative aunt and Direct labor rate variance Difference X Direct labor time variance S S The change in the caused the labor rate vanances. This change have been responsible for the direct labor time variance 12. Determine and interpret the factory overheed controllable variance. Enter a favorable variance as a negative amount and an unfavorable variance as a positive amount Factory Overhead Controllable Variance 5 Factory overhead controllable vanance The factory overhead controllable variance was caused by the variance in positive amour 13. Determine and interpret the factory overhead volume variance. Round rate to four decimal places. Enter a favorable variance as a negative amount and an unfavorable variance Factory Overhead Volume Variance Normal volume (cases) Actual volume (cases) Difference x $ $ Factory overhead volume variance The volume variance indicates the cost of 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1.000-case production volume rather than the planned 1,375 cases of produc and (7)? $ Direct Labor Time Variance Mixing Department Filling Department cons cases One Spice began operations on January 1 of mecument year. The company produces gros of hand and called sebing commission of 820 per case. The Januaryd mae tractor and factory ove for DIRECT MATERIALS $100 per case. Cost Behar Units per Case Cost per Unit Cost per Ca $2.00 Creanas Ve 100 9.00 No Va 300 0:30 Bote (8) V 6.40 $17.00 DIRECT LABOR Department Cost Behavior Time par Case Leber Rate per Hour Cest per Ca Verable $18.00 20 min Maing $4.00 Falling Vacati 1.20 14.40 6 $7.20 25 min FACTORY OVERHEAD Cost Behavior Total Cost Unite 1000 Facity 4.300 Supplies 660 $19.500 Part A-Break Even Analysis The loowing ea The management of Genuine Spice inc warts to determine the number of s x months of operation regarding this cost Case Production Utility Total Cost January 500 5000 February 800 600 March 1,200 740 Apr 1,100 720 May 950 000 Jute 1,025 705 Required-Part A 1. Demine the Exed and saciat portion of the utility car using the bad De net round your intermediate calculations and round variable cost per unit answers to two decimal places 2. Determine the stomar per case Do not round your intermediate calculations and round your final awar) places 3. Det the fed costs per more including the utility and cost from part De the brea-even number of cases per month Part 8-August Budgets During y of the curent year the management of Genuine Spice inc asked the correr to prepare Augal maning and income sementes Demand was expaced to be 1.500 cases an planning information is provided as fotos per case for "AUS" es Questions (Part A 1. Determine the feed and vacable portion of the alty cost using the heat low method. Do not round your intermediate calculations and round variable cost per unit answers to two decimal places. At High Point At Low Point Variable cont per un 5 Total Exed cost Tutal cost 2 Detere the contribution.maran per case De not round your intermediate calculations and round your final answer to two decimal places, S 1 Determine the fixed cuts per month, including the utility fixed cost from part (1) 3. Determine the fixed costs per month, including the utility fixed cost from part (1) 1 Total fixed costs: 2 6 4. Determine the break-even number of cases per month. 3 4 5 cases 5. Prepare the August production budget. Enter all amounts as positive numbers. Genuine Spice Inc. Production Budget For the Month Ended August 31 Cases Plus Total cases required Less 6 Prepare the August direct materials purchases budget Enter all amounts as positive numbers Round unit price answers to two decimal places. Genuine Spice Inc. Direct Materials Purchases Budget For the Month Ended August 31 Bottles (bottles) Plus Total units required Less Total materials to be purchased - X S $ Cream Base (oz.) $ $ Natural Oils (oz.) $ Total Direct Labor Cost Budget 7. Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour. Enter all amounts as positive numbers Genuine Spice Inc. Direct Labor Cost Budget For the Month Ended August 31 Mixing Filling $ X $ $ $ Total Factory Overhead Cost Budget 8. Prepare the August factory overhead cost budget Enter all amounts as positive numbers. If an amount box does not require an entry, leave it blank (Entries of zero (0) will be cleared automatically by CNOW) Genuine Spice Inc. Factory Overhead Cost Budget For the Month Ended August 31 Variable Total Factory overhead Utilities $ Facility lease Equipment depreciation Supplies Total $ $ Fixed Budgeted Income Statement 9 Prepare the August budgeted income statement, including selling expenses. Enter all amounts as positive numbers NOTE Because you are not required to prepare a cost of goods se budget, the cost of goods sold calculations will be part of the budgeted income statement Genuine Spice Inc. Budgeted Income Statement For the Month Ended August 31 Revenue from sales $ Finished goods inventory, August 1 $ Direct materials Direct materials inventory, August 1 Direct materials purchases Cost of direct materials available for use Less direct materials inventory, August 31 Cost of direct materials placed in production S $ $ Budgeted Income Statement trece materiais divertiorgast Direct materials purchases Cost of direct materials available for use $ Less direct materials inventory, August 31 Cost of direct materials placed in production $ Direct labor Factory overhead Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, August 31 Cost of goods sold Gross profit Selling expenses Income before income tax $ Variance Analysis (Part 6) 10 Determine and interpret the direct materials price and quantity vanances for the three materials Round your answers to three decimal places. Enter a favorable vanance as a negative amount, and an unfavorable vwance as a positive amount Direct Materials Price Variance Cream Base Natural Oils Bottles S $ Difference $ X Drect matemals price variance $ 4 Variance Analysis (Part C) DICLE CHGOF THE VATRICE Difference X Direct labor time variance The change in the labor classification standard labor time Direct Labor Time Variance Mixing Department Filling Department caused the labor rate variances. This change have been responsible for the direct labor time variance Vanance Analysis (Part C) 12. Determine and interpret the factory overhead controllable variance Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount Factory Overhead Controllable Variance $ Factory overhead controllable variance $ The factory overhead controllable variance was caused by the variance in Variance Analysis (Part C) 13. Determine and interpret the factory overhead volume variance. Round rate to four decimal places. Enter a favorable variance a Factory Overhead Volume Variance Normal volume (cases) Actual volume (cases) Difference Factory overhead volume variance $ The volume variance indicates the cost of a negative amount and an unfavorable variance as a positive amount 14 Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (17) based on the actual 1,500 case production volume rather than the planned 1,375 cases of production used in the budgets for parts () and (7) Vanabile costs of the budget must few to the actual or standard production volume, whichever is higher so that variances are compared across the same production volume Variable costs of the budget must ficx to the standard production volume so that variances are compared across the same production volume Variable costs of the budget must Bex to the actual production volume so that vanances are compared across the same production volume