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. $$0\mathrm{.}02$ $$2\mathrm{.}00$

Natural oils Variable $30$ ozs. $0\mathrm{.}309\mathrm{.}00$

Bottle $(8-$oz$.)$ Variable $12$ bottles $0\mathrm{.}506\mathrm{.}00$

$$17\mathrm{.}00$

DIRECT LABOR

Department Cost

Behavior Time

per Case Labor Rate

per Hour Direct Labor

Cost per Case

Mixing Variable $20$ min. $$18\mathrm{.}00$ $$6\mathrm{.}00$

Filling Variable $514\mathrm{.}401\mathrm{.}20$

$25$ min. $$7\mathrm{.}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 C$$August 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\mathrm{.}016$ per oz$.102$ ozs.

Natural oils $$0\mathrm{.}32$ per oz$.31$ ozs.

Bottle $(8-$oz$.)$ $$0\mathrm{.}42$ per bottle $12\mathrm{.}5$ bottles

Actual Direct Labor

Rate Actual Direct Labor

Time per Case

Mixing $$18\mathrm{.}2019\mathrm{.}50$ min.

Filling $14\mathrm{.}005\mathrm{.}60$ min.

Actual variable overhead $$305\mathrm{.}00$

Normal volume $1,600$ casesDetermine 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

Normal volume $($cases$)$

Actual volume $($cases$)$

Difference

Fixed factory overhead rate

Factory overhead volume variance

Indicate if favorable or unfavorable

The production volume of

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

units of actual production.