Instructions Genuine Spice Inc began operations on January 1 of the current year The company produces ught ounce bottles of hand and body lotion called Eternal Beauty The con Wholesale in 12 bottle cases for 5100 per caseThere is a selling commission of $20 per case. The January direct materiais direct labor, and factory overhead costs are as folic DIRECT MATERIALS Cost Behavior Units per Case Coat per Unit Cost per Case Creambase Viable 100 5002 $200 Naturals Vinablo 3002 030 9.00 N Bottle (Bor) Variable 12 bottles 0.50 0.00 51700 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Cost per Case Mixing Variable 20 m $180 8800 Find Variable 5 1440 120 25 min 57.20 FACTORY OVERHEAD Cost Behavior Total Cost Unte Mixed S600 Facility foase Fixed 14 000 Equipment Depreciation Fixed 4,300 Supplies Fed 600 $19,560 Instructions 9. Prepare the August budgeted income statement including seling exponses NOTE Because you are not required to prepare a cost of goods sold budget the cost of goods sold cakulations will be part of the budgeted income statement Enter al amounts as positive numbers Part C-August Variance Analysis During September of the current year the controller was asked to perform variance analyses for Agint. The January operating data provided the standard prices, rutes, times quantities per case. There were 1,500 actual cases produced during August which was 250 moio cases than planned at the beginning of the month Actual data for August wel follows Actual Direct Materials Price per Unit Quantity per Case Creambase $0 016 por 2 102 02 Natural 30 32 per 2 317 Bottle (Boz) $0.42 per bottle 125 bottles Actual Direct Actual Direct Labor Labor Rate Time per Case $18 20 19 50 min 14.00 560 min Mixing Filing Actual vanable overhead Normal volume $30500 1600 cases The peces of the materials were different from standard due to fluctuations in market prices The standard quantity of materials used per case was an ideal standard The Moxing Department used a higher grade labor classification during the month, thus causing the actual taborrate to exceed standard The Filing Department used a lower toda labor classification during the month, thus causing the actual latior tale to be less than standard Required-Part 10 Determine and interpret the direct material price and quantity varices for the three material 11. Determine and interpret the deck laborate and time variances for the two partments Round hours to the nearest tenth of an hour 12 Determine and interpret the factory overhead controllable variance 13 Determine and interpret the factory overhead volume vanance 14 Why are the standard direct labor and direct materials costs in the caktons for parts go and (1) based on the actual 1,500.com production volume rather than the planned 375 cases of production used in the budgets for parts (6) and (?? + Previous Next > structions Questions Part All Production Budget Direct Materials Purchases Budget Direct Labor Cost Budget Pectory Overhead Cont Budget Budosted Inc Varasto warna merawat Der Prie Vance Crew NO 1 Directors Oy Crew Bus rencer Date FD Cive Pro tractors Question put Production Budget Direct Materials Purchases Butt Direct Labor Cost Budget Factory Overhead Cost Budget Datori come Statement s Dr Lab wang Final Eram Cephesive Problems strom Amount Deco Questions Part A) Production Budget Direct Materials Purchases Budget Direct Labor Cost Budget Factory Overhead Cost Budget Budgeted Income Statem Ded web www Factory Over Contrerance actory Overhead Vote Varese 1 omprehensive Problems Instructions Amount Descriptions Questions (Part A) Production Budget Direct Materials Purchases Budget Direct Labor Cost Budget Factory Over ind Budgeted Income Statement 9. Prepare the August badpeted income statement cling sodiy xperies Enter all amounts as pontive numbers NOTE Because you are not required to prepwe a cont of goods sold budget the cost of goods sold calculations will be part of the basted come statement As Genuine Spice Inc Budgeted Income Statement PS For the Month Ended August 31 fo Revenge from sales Finished goods inventory, August 1 S De matonats Direct materials inventory August 1 5 Direct materials purchases Cost of duct materials avantable for use Less drect maternal entory Austa Cost of de materiais placed in production S Decor Factory overhead Cost of goods manufactured Cost of finished goods wile for sale TI 0 Less too goods inventory Augusta c Cost of goods Cross prom Setting expenses Income before income tax producto Comprehensive Problems Amount Descriptions Questions (Part A) Production Budget Direct Materials Purchases Budget Varlance Analysis (Part C) Instructions Direct Labor Cost Budget | Face Prepare ne Augest busted income statement, including selling cos. Enter at amounts as positive numbers. NOTE Because you are not regured to prepare a cost of goods sold budget, the cost of goods sold cakultations will be part of the budgetost income statement Factory Overhead Cost Budget 8 Prepare the August factory overhead Course Erfor all moonts as positive number av amont box does not require an entry, forvetlank Entries of revo (0) will be cleared automaticway by CNOW) Genuine Spice Ine Factory Overhead Cost Budget For the Month Ended August 31 Fed Variable Total Factory overhead $14.000 5000 Facility louse 14.000 14.000 Equment depreciation 4.300 4.300 Suppies 660 600 Total $18.000 $19.500 Comprehensive Problem Instructions Amount Descriptions Variance Analysis (Part C) Questions (Part A) Production Budget Direct Materials Purchases Budget Direct Labor Cost Budget Factory Ove Direct Matonals Purchases Budget Prepare the spist direct materias purchases budget Ewer amounts as positive number Genuine Spice Inc Direct Materials Purchases Budget For the Month Ended August 31 Cream Base (ox) Natural Oils (1) Bottles (bottles Total 137 500 41,250 16,500 1,000 300 240 250 200 000 Units required for production Phe desired ending inventory www.stimated beginning inventory Druct materials to be purchased X Unit price Total direct materials to be purchased 138.260 41,320 10.140 $0.02 $0.30 30.50 amount 32,765 $12 300 $23,2315 TV CUSTO