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Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8 - ounce bottles of hand and body lotion called
Genuine Spice Inc. began operations on January of the current year. The company produces ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in bottle cases for $ per case. There is a selling commission of $ 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 ozs. $ $ Natural oils Variable ozs. Bottle oz Variable bottles $ DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable min. $ $ Filling Variable min. $ FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $ Facility lease Fixed Equipment depreciation Fixed Supplies Fixed $ Part CAugust 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 actual cases produced during August, which was 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 $ per oz ozs. Natural oils $ per oz ozs. Bottle oz $ per bottle bottles Actual Direct Labor Rate Actual Direct Labor Time per Case Mixing $ min. Filling min. Actual variable overhead $ Normal volume cases
Genuine Spice Inc. began operations on January of the current year. The company produces ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in bottle cases for $ per case. There is a selling commission of $ 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 ozs. $ $
Natural oils Variable ozs.
Bottle oz Variable bottles
$
DIRECT LABOR
Department Cost
Behavior Time
per Case Labor Rate
per Hour Direct Labor
Cost per Case
Mixing Variable min. $ $
Filling Variable
min. $
FACTORY OVERHEAD
Cost Behavior Total Cost
Utilities Mixed $
Facility lease Fixed
Equipment depreciation Fixed
Supplies Fixed
$
Part CAugust 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 actual cases produced during August, which was 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 $ per oz ozs.
Natural oils $ per oz ozs.
Bottle oz $ per bottle bottles
Actual Direct Labor
Rate Actual Direct Labor
Time per Case
Mixing $ min.
Filling min.
Actual variable overhead $
Normal volume cases
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