Question
Genuine Spice Inc. began operations on January 1 of the current... Genuine Spice Inc. began operations on January 1 of the current year. The company
Genuine Spice Inc. began operations on January 1 of the current...
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight-ounce bottles of hand and body lotion calledEternal 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 oz $0.02 $ 2.00
Natural Oils Variable 30 oz .30 9.00
Bottle (8 oz.) Variable 12 bottles .50 6.00
____________
17.00
Direct Labor
Department Cost Behavior Time Per Case Labor Rate Per Hour Direct Labor Cost Per Case
Mixing Variable 20 minutes $18.00 $6.00
Filling Variable 5 $14.40 $1.20
______ _________
25 minutes $7.20
Factory Overhead
Cost Behavior Total Cost
Utilities Mixed $. 600.00
Facility Lease Fixed 14,000.00
Equipment Depreciation Fixed 4,300.00
Supplies Fixed 660.00
_____________
$19,560
PART 1
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