I need exercise 7
Chapter 22 Comprehensive Problem #5 eBook ? Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Elernal 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 Cost per Case Cream base Variable 100 ozs $0.02 $ 2.00 Natural oils Variable 30 ozs 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case Mixing Variable 20 min $18.00 $6.00 Filling Variable 5 14.40 1.20 25 min $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Chapter 22 Comprehensive Problem #5 Book FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed Facilily lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19.560 Part A-Break-Even Analysis The management of Genuine Spice Inc. wishes to determine the number of cases required to break even per month. The utilities cost, which is part of factory overhead, Is a mixed cost. The following information was gathered from the first six months of operation regarding this cost: Month Case Production Utility Total Cost January 500 8600 February 800 660 March 1,200 740 April 1,100 720 May 950 690 June 1.025 705 Required-Part A: 1. Determine the fixed and variable portions of the utility cost using the high-low method. Round your per unvil cost to two decimal places. Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Chapter 22 Comprehensive Problem #5 eBook ? Required-Part A: 1. Determine the fixed and variable portions of the utility cost using the high-low method. Round your per unit cost to two decimal places. 2. Determine the contribution margain per case. Round your answer to two decimal places 3. Determine the fixed costs per month, including the utily fixed cost from part (1). Refer to the lists of Amount Descriptions for the exact wording of the answer choices for text entries. 4. Determine the break-even number of cases per month. Part B - August Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning Information is provided as follows: Finished Goods Inventory: Cases Cost 300 $12,000 Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 , 175 7,000 Materials Inventory: Oils Cream Base (ozs.) Bottles (bottles) (ozs.) 250 290 600 Estirnated materials inventory, August 1 Desired materials inventory, August 31 1.000 360 240 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Required-Part B: 5. Prepare the August production budget." 6. Prepare the August direct materials purchases budget.* 7. Prepare the August direct labor cost budget Round the hours required for production to the nearest hour.' . 8. Prepare the August factory overhead cost budget. If an amount box does not require an entry, leave it blank. (Entries of zero (O) will be cleared automatically by CNOW.) 9. Prepare the August budgeted income statement, including selling expenses.' "Enter all arounis as posillvembers. Part C-August Variance Analysis During September of the current year, the controller was asked to perform variance analyses for August. The January operating dala 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: Cream base Actual Direct Materials Price per Unit Quantity per Case $0.016 per oz. 102 Ozs. S0.32 per oz. 31 ozs. $0.42 per bottle 12.5 bottles Natural oils Bottle (8-oz.) Actual Direct Actual Direct Labor Time per Case Labor Rate Mixing S18.20 19.50 min Filling 14.00 5.60 min. Actual variable overhead $305.00 Alarmalan Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Chapter 22 Comprehensive Problem #5 eBook Actual variable overhead $305.00 Normal volume 1,600 cases The prices of the materials were different than standard due to fluctuations in market prices. The standard quantity 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 Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard. Required-Part C: 10. Determine and interpret the direct matenais price and quantity vanances for the three matenals. Round your price values for Cream Base to thvee decimal places and Natural Ows & Bottles to two decimal places. 11. Determine and interpret the direct labor rate and time variances for the two departments. Do not round hours. Round your answers to two decimal places. 12. Determine and interpret the factory overhead controllable variance." 13. Determine and interpret the factory overhead volume variance. Round rate to four decimal places and round your final answer to wo decimal places. 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500 case production volume rather than the played 1,250 cases of production used in the budgets for parts (6) and (7)? *Negative amount should be indicated by the minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Amount Descriptions Amount Descriptions-Part A Controllable variance Equipment depreciation Farillosen Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Chapter 22 Comprehensive Problem #5 eBook 10. Determine and interpret the direct materials price and quantity variances for the three materials. Round your price values for Cream Base to three decimal places and Natural Os & Bottles to two decimal places. 11. Determine and interpret the direct lebey rate and time variances for the two departments. Do not round fours. Round your answers to two decimal places. 12. Determine and interpret the factory overhead controllable variance. 13. Determine and interpret the factory overhead volume variance. Round rate to four decimal places and round your final answer to two decimal places. 14. Why are the standard direct labor and direct matorials costs in the calculations for parts (10) and (11) based on the actual 1,500 case production volume rather than the planned 1,250 cases of production used in the budgets for parts (6) and (7)? "Negative amount should be indicated by the minus sign. Enter a favorable variance as a negative number using a mirus sign and an unlavorable variance as a posilive number Amount Descriptions Amount Descriptions-Part A Controllable variance Equipment depreciation Facility lease Supplies Utilities Volume variance Questions (Part Al Shaded.calls befoedback Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Direct Labor Cost Budget Shaded cells have feedback. 7. Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour. Enter al amounts as positive numbers. Genuine Spice Inc. Direct Labor Cost Budget For the Month Ended August 31 Hours required for production of: Mixing Filling Total Is S $ Is Points: 0/10 Feedback Check My Work 7. Multiply direct labor hours required by the direct labor rate per hour. Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Chapter 22 Comprehensive Problem #5 eBook ? Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Elernal 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 Cost per Case Cream base Variable 100 ozs $0.02 $ 2.00 Natural oils Variable 30 ozs 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case Mixing Variable 20 min $18.00 $6.00 Filling Variable 5 14.40 1.20 25 min $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Chapter 22 Comprehensive Problem #5 Book FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed Facilily lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19.560 Part A-Break-Even Analysis The management of Genuine Spice Inc. wishes to determine the number of cases required to break even per month. The utilities cost, which is part of factory overhead, Is a mixed cost. The following information was gathered from the first six months of operation regarding this cost: Month Case Production Utility Total Cost January 500 8600 February 800 660 March 1,200 740 April 1,100 720 May 950 690 June 1.025 705 Required-Part A: 1. Determine the fixed and variable portions of the utility cost using the high-low method. Round your per unvil cost to two decimal places. Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Chapter 22 Comprehensive Problem #5 eBook ? Required-Part A: 1. Determine the fixed and variable portions of the utility cost using the high-low method. Round your per unit cost to two decimal places. 2. Determine the contribution margain per case. Round your answer to two decimal places 3. Determine the fixed costs per month, including the utily fixed cost from part (1). Refer to the lists of Amount Descriptions for the exact wording of the answer choices for text entries. 4. Determine the break-even number of cases per month. Part B - August Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning Information is provided as follows: Finished Goods Inventory: Cases Cost 300 $12,000 Estimated finished goods inventory, August 1 Desired finished goods inventory, August 31 , 175 7,000 Materials Inventory: Oils Cream Base (ozs.) Bottles (bottles) (ozs.) 250 290 600 Estirnated materials inventory, August 1 Desired materials inventory, August 31 1.000 360 240 There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Required-Part B: 5. Prepare the August production budget." 6. Prepare the August direct materials purchases budget.* 7. Prepare the August direct labor cost budget Round the hours required for production to the nearest hour.' . 8. Prepare the August factory overhead cost budget. If an amount box does not require an entry, leave it blank. (Entries of zero (O) will be cleared automatically by CNOW.) 9. Prepare the August budgeted income statement, including selling expenses.' "Enter all arounis as posillvembers. Part C-August Variance Analysis During September of the current year, the controller was asked to perform variance analyses for August. The January operating dala 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: Cream base Actual Direct Materials Price per Unit Quantity per Case $0.016 per oz. 102 Ozs. S0.32 per oz. 31 ozs. $0.42 per bottle 12.5 bottles Natural oils Bottle (8-oz.) Actual Direct Actual Direct Labor Time per Case Labor Rate Mixing S18.20 19.50 min Filling 14.00 5.60 min. Actual variable overhead $305.00 Alarmalan Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Chapter 22 Comprehensive Problem #5 eBook Actual variable overhead $305.00 Normal volume 1,600 cases The prices of the materials were different than standard due to fluctuations in market prices. The standard quantity 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 Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard. Required-Part C: 10. Determine and interpret the direct matenais price and quantity vanances for the three matenals. Round your price values for Cream Base to thvee decimal places and Natural Ows & Bottles to two decimal places. 11. Determine and interpret the direct labor rate and time variances for the two departments. Do not round hours. Round your answers to two decimal places. 12. Determine and interpret the factory overhead controllable variance." 13. Determine and interpret the factory overhead volume variance. Round rate to four decimal places and round your final answer to wo decimal places. 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500 case production volume rather than the played 1,250 cases of production used in the budgets for parts (6) and (7)? *Negative amount should be indicated by the minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Amount Descriptions Amount Descriptions-Part A Controllable variance Equipment depreciation Farillosen Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Chapter 22 Comprehensive Problem #5 eBook 10. Determine and interpret the direct materials price and quantity variances for the three materials. Round your price values for Cream Base to three decimal places and Natural Os & Bottles to two decimal places. 11. Determine and interpret the direct lebey rate and time variances for the two departments. Do not round fours. Round your answers to two decimal places. 12. Determine and interpret the factory overhead controllable variance. 13. Determine and interpret the factory overhead volume variance. Round rate to four decimal places and round your final answer to two decimal places. 14. Why are the standard direct labor and direct matorials costs in the calculations for parts (10) and (11) based on the actual 1,500 case production volume rather than the planned 1,250 cases of production used in the budgets for parts (6) and (7)? "Negative amount should be indicated by the minus sign. Enter a favorable variance as a negative number using a mirus sign and an unlavorable variance as a posilive number Amount Descriptions Amount Descriptions-Part A Controllable variance Equipment depreciation Facility lease Supplies Utilities Volume variance Questions (Part Al Shaded.calls befoedback Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading Direct Labor Cost Budget Shaded cells have feedback. 7. Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour. Enter al amounts as positive numbers. Genuine Spice Inc. Direct Labor Cost Budget For the Month Ended August 31 Hours required for production of: Mixing Filling Total Is S $ Is Points: 0/10 Feedback Check My Work 7. Multiply direct labor hours required by the direct labor rate per hour. Check My Work Assignment Score: 27.58% All work saved. Email Instructor Save and Exit Submit Assignment for Grading
