Instructions 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 Cost per Case Cream base Variable 100025 $0.02 $2.00 Variable Natural oils 30 OZ 0.30 9.00 Bottle (8-02) Variable 12 bottles 050 5.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rato per Hout Cost per Case Mixing Variable 20 min $18.00 $5.00 Filling Variable 5 14.40 1.20 25 min $7.20 Amount Descriptions FACTORY OVERHEAD Cost Behavior Total Cost Amount Descriptions Part A Utilities Mixed $600 Controllable vanance Facility lease Foved 14,000 Equipment depreciation Facility lease Equipment depreciation Forced 4,300 Supplies Supplies Fixed 660 Units $19,560 Volume variance Part A--Break Even Analysis The management of Genuine Spice Inc, wishes to determine the number of cases required to break even per The winners w $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 500 $600 January February 800 560 March 1 200 740 April 1,100 720 May 950 690 June 1,025 705 Required-Part A: 1. Determine the fixed and vanable portions of the unity cost using the glow method Round your per unit cost to two decimal places. 2. Determine the contribution margin per case. Round your answer to two decimal places. 3. Determine the fixed costs per month, including the utility foced cost from part (0) Refer to the of Amount Descriptions for the exact wording of the answer choices for text entries 4. Determine the break-even number of cases per month Amount Descriptions e Inc asked the controller to prepare August bcted to be 1 500 cases at $100 per case for Amount Descriptions-Part A Controllable variance Equipment depreciation Facility lease Supplies Utilities Cost $12,000 Volume variance 7,000 1. Determine the fixed and variable portions of the unity cost using the ingh-low method Round your per unit cost to two decimal places. 2. Determine the contribution maroin per case Round your answer to two decimal places, 3. Determine the fixed costs per month, including the utility fixed cost from part (1). Refer to the las of Amount Descriptions for the exact wording of the answer choices for text entries 4. Determine the break-even number of cases per month Amount Descriptions EX e inc, asked the controller to prepare August Amount Descriptions-Part A cted to be 1.500 cases at $100 per case for Controllable variance Equipment depreciation Facility lease Supplies Cost Utilities $12.000 Volume variance 7,000 Questions (Part A) 1. Determine the foxed and variable portions of the utility cost using the high-low method Round your per unit cost to two decimal places. At the High Point At the Low Point Variable cost per unit $ $ Total fixed cost $ $ Total cost S $ 2 Determine the contribution margin per case Round your answer to two decimal places. 5 per case Prepare the August director Dogor Round me nours requirea Tor production to the
