I want the answer for number 10

and the explanation plis

August Budgets

During July of the current year, the management of Natural Fragrance, Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,300 cases at $80 per case for August. Inventory planning information is provided as follows:

Finished Goods Inventory:

Cases Cost

Estimated finished goods inventory, August 1, 2017 200 $6,000

Desired finished goods inventory, August 31, 2017 100 $3,000

Materials Inventory:

Cream Base Oils Bottles

(ozs.) (ozs.) (bottles)

Estimated materials inventory, August 1, 2017 200 240 500

Desired materials inventory, August 31, 2017 800 300 200

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.

Instructions

5. Prepare the August production budget.

6. Prepare the August direct materials purchases budget.

7. Prepare the August direct labor budget.

8. Prepare the August factory overhead budget.

9. Prepare the August budgeted income statement, including selling expenses.

- - BIUab x, X AD - SESSIE 2 - AaBb 1 Normal AaBbC AaBbC AaBbCcl Aab 1 No Spac... Heading 1 Heading 2 Title a z Font Paragraph Styles Factory Overhead Cost Behavior Total Cost Mixed Utilities Facility lease Equipment depreciation Supplies Fixed Fixed Fixed $ 230. $12,043 $ 3,600. $ 600 $16.473 2017 $263 A. Break-Even Analysis The management of Natural Fragrance, 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: Case Production Utility Total Cost January 300 $230 February 600 March 1,000 $300 900 $292 $280 June 825 $285 Instructions 1. Determine the fixed and variable portion of the utility cost using the high-low method. 2. Determine the contribution margin per case. 3. Determine the fixed cost per month, including the utility fixed cost from part (1) 4. Determine the break-even number of cases per month April May B- August Budgets During July of the current year, the management of Natural Fragrance, Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1.300 cases at $80 per case for August. Inventory planning information is provided as follows: Focus English (United States) o arch wa e 11 A A A IU - ab X, X A E A E S E | AaBbc AaBbc AaBbc AaBbccl Aab T Normal 1 No Spac... Heading 1 Heading 2 Title l Font Paragraph Styles 8 = 1. Natural Fragrance, Inc. began operations on January 1, 2017. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $80 per case. There is a selling commission of $16 per case. The January direct materials, direct labor, and factory overhead cost are as follows. Direct Materials Cost Behavior Units per Case Cost Per Unit Direct Materials Cost per Case Cream base Natural oil Bottle (8-oz.) Variable Variable Variable 72 oz. 24 ozs $0.015 $0.250 $0.400 $1.08 $6.00 $4.80 $11.88 12 bottles Direct Labor Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Department Mixing Filling Variable Variable 16.8 min. 42 min 21.0 min $15.00 $12.00 $4.20 $0.84 $5.04 Factory Overhead Cost Behavior Total Cost Utilities Facility lease Equipment depreciation Supplies Mixed Fixed Fixed Fixed $ 230. $12,043 $ 3.600 $ 600 516 473 D. Focus B2 nglish (United States) 11 - A A Aa to EEEA : Uab x x ADA EEI 1 Normal 1 No Spac... Heading 1 Heading 2 Title Font Paragraph Styles = 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 1,300 actual cases produced during August, which was 100 more cases than planned at the beginning of the month. Actual data for August were as follows: Actual Direct Materials Actual Direct Materials Price per Unit Quantity per Case Cream base $0.014 per oz. 74 ozs. Natural oils $ 0.27 per oz. 26 ozs. Bottle (8-oz.) $ 0.35 per bottle 12.6 bottles! Actual Direct Labor Rate Mixing Filling $15.20 $11.70 Actual Direct Labor Time per Case 16.20 min 4.80 min. Actual variable overhead Normal volume $162.00 1,350 cases The price of the materials were different than standard due to fluctuations 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 Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard. Instruction 10. Determine and interpret the direct materials price and quantity variances for the three materials D. Focus 20