Note: This section is a continuation from Parts A and B of the comprehensive problem, Be sure you have completed Parts A and B before attempting Part C. You may i to refer back to data presented in Parts A and B as well as use answers from those parts when completing this section. Genuine Spice Inc, began operations on January 1 of the current year. The company produces 8-ounce botties of hand and body lotion called Eternal Beauty. The fotion 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 LABOR FACTOAY OVERHEAD During September of the current yeac, 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 1,500 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: The prices of the materiais 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. Required: Enter subtracted amounts with minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 10. Determine and interpret the direct materials price and quantity variances for the three materials. Enter the costs in dollars and cents (carried to three decimal places when required). 11. Determine and interpret the direct labor rate and time variances for the two departments. Do not round hours. Enter the costs in dollars and cents. Direct Labor Rate Variance: 2. Determine and interpret the direct labor rate and time yariances for the two departments. 13. Determine and interpret the factory overhed volume variance, Round rate to four decimal places and round your final answer to two decimal 14. The production volume of cases was planned at the beginning of August. The variances compare the actual cost and the standard cost of Ior the month. Thus, the standard cost must be based on the units of actual production. Note: This section is a continuation from Parts A and B of the comprehensive problem, Be sure you have completed Parts A and B before attempting Part C. You may i to refer back to data presented in Parts A and B as well as use answers from those parts when completing this section. Genuine Spice Inc, began operations on January 1 of the current year. The company produces 8-ounce botties of hand and body lotion called Eternal Beauty. The fotion 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 LABOR FACTOAY OVERHEAD During September of the current yeac, 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 1,500 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: The prices of the materiais 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. Required: Enter subtracted amounts with minus sign. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 10. Determine and interpret the direct materials price and quantity variances for the three materials. Enter the costs in dollars and cents (carried to three decimal places when required). 11. Determine and interpret the direct labor rate and time variances for the two departments. Do not round hours. Enter the costs in dollars and cents. Direct Labor Rate Variance: 2. Determine and interpret the direct labor rate and time yariances for the two departments. 13. Determine and interpret the factory overhed volume variance, Round rate to four decimal places and round your final answer to two decimal 14. The production volume of cases was planned at the beginning of August. The variances compare the actual cost and the standard cost of Ior the month. Thus, the standard cost must be based on the units of actual production
