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Quivers Inc. began operations on January 1 of the current year. The company produces eightrounce bottles ofiet wax called Ophelia Shine. The wax is sold wholesale in 12bottle 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 Direct Materials Cost Cost Behavior Units per Case Cost per Unit per Case Cream base Variable 100 oz $0.02 $2.00 Natural oils Variable 30 oz $0.30 $9.00 Bottle (8 oz) Va riable 12 bottles $0.50 $6.00 Total $17.00 DIRECT LABOR . , Direct Labor Cost er Department Cost BehaVIor Time per Case Labor Rate per Hour Case p Mixing Variable 20 minutes $18.00 $6.00 Filling Variable 5 minutes $14.40 $1.20 Total 25 minutes $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed $14,000 Equipment depreciation Fixed $4300 Supplies Fixed $660 Total $19,560 Part C. August Variance Analysis During September of the current year, Robin 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 Actual Direct Material Materials Price Materials per Unit Quantity per Case Cream Base (OZ.) 0,016 102 Natural Oils (oz.) $ 0,32 31 Bottles 0,42 12,5 Actual Direct Activity Actual Direct Labor Time per Labor Rate Case (minutes) Mixing 18,20 19,50 Filling 14,00 5,60 Actual Variable Overhead tA 305,00 Normal Volume (Cases) 1.600The prices of the materials were different from standard due to uctuations 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 Filing Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard. Requirement #10: Determine the direct materials variance. Direct Materials Price Variance Actual Quantity Cream Base Natural Oils Bottles Cream BaseNatural Oils Bottles Cases Actual Price Amount Standard Price Total Difference * Actual Quantity (Units) Direct Materials Price Variance Decision AnalysisDirect Materials Quantity Variance Standard Quantity Cream Base Natural Oils Bottles Cream BaseNatural Oils Bottles Cases Actual Quantiy Amount Standard Quantity Total Difference * Standard Price Direct Materials Quantity Variance Decision AnalysisRequirement #11: Determine the direct labor variance. Direct Labor Rate Variance Actual Time Mixing Filling Department Department Mixing Filling Actual Rate Units Standard Rate Minutes Difference Hours * Actual Time (Hours) Total Direct Labor Rate Variance Decision AnalysisDirect Labor Time Variance Standard Time Mixing Filling Department Department Mixing Filling Actual Time Units Standard Time Minutes Difference Hours * Standard Rate Total Direct Labor Time Variance Decision AnalysisRequirement #12: Determine the factory overhead variance. Factory Overhead Controllable Variance Variance overhead (utility cost) at standard cost Actual variable overhead Cases Variable overhead at standard cost Total fixed factory overhead Factory overhead controllable variance Total Decision Factory Overhead Volume Variance Fixed factory overhead rate Normal volume (cases) Cases Actual volume (cases) Total fixed factory overhead Difference Total * Fixed factory overhead rate $0,00 Decision Analysis