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 have 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 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 Direct Materials 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 Direct Labor 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 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560 Part CAugust 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 1,500 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: Actual Direct Materials Price per Unit Actual Direct Materials Quantity per Case Cream base $0.016 per oz. 102 ozs. Natural oils $0.32 per oz. 31 ozs. Bottle (8-oz.) $0.42 per bottle 12.5 bottles Actual Direct Labor Rate Actual Direct Labor Time per Case Mixing $18.20 19.50 min. Filling 14.00 5.60 min. 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 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 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). Direct Materials Price Variance: Cream Base Natural Oils Bottles Actual price $fill in the blank 1 0.016 $fill in the blank 2 0.32 $fill in the blank 3 0.42 Standard price fill in the blank 4 -0.020 fill in the blank 5 -0.300 fill in the blank 6 -0.500 Difference $fill in the blank 7 -0.004 $fill in the blank 8 0.02 $fill in the blank 9 -0.08 Actual quantity (units) Xfill in the blank 10 153,000 ozs. Xfill in the blank 11 46,500 ozs. Xfill in the blank 12 18,750 btls. Direct materials price variance $fill in the blank 13 -612 $fill in the blank 14 930 $fill in the blank 15 -1,500 Indicate if favorable or unfavorable Favorable Unfavorable Favorable Enter the standard price to two decimal places. Direct Materials Quantity Variance: Cream Base Natural Oils Bottles Actual quantity fill in the blank 19 153,000 ozs. fill in the blank 20 46,500 ozs. fill in the blank 21 18,750 btls. Standard quantity fill in the blank 22 -150,000 fill in the blank 23 -45,000 fill in the blank 24 -18,000 Difference fill in the blank 25 3,000 ozs. fill in the blank 26 1,500 ozs. fill in the blank 27 750 btls. Standard price Xfill in the blank 28 0.02 Xfill in the blank 29 0.30 Xfill in the blank 30 0.50 Direct materials quantity variance $fill in the blank 31 60 $fill in the blank 32 450 $fill in the blank 33 375 Indicate if favorable or unfavorable Unfavorable Unfavorable Unfavorable 11. Determine 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: Mixing Department Filling Department Actual rate $fill in the blank 37 18.20 $fill in the blank 38 14 Standard rate fill in the blank 39 -18 fill in the blank 40 -14.40 Difference $fill in the blank 41 0.20 $fill in the blank 42 -0.40 Actual time (hours) Xfill in the blank 43 487.5 Xfill in the blank 44 140 Direct labor rate variance $fill in the blank 45 97.50 $fill in the blank 46 -56 Indicate if favorable or unfavorable Unfavorable Favorable Direct Labor Time Variance: Mixing Department Filling Department Actual time (hours) fill in the blank 49 487.5 fill in the blank 50 140 Standard time (hours) fill in the blank 51 -500 fill in the blank 52 -125 Difference fill in the blank 53 -12.5 fill in the blank 54 15 Standard rate X $fill in the blank 55 18 X $fill in the blank 56 14.40 Direct labor time variance $fill in the blank 57 -225 $fill in the blank 58 216 Indicate if favorable or unfavorable Favorable Unfavorable 12. Determine the factory overhead controllable variance. Actual variable overhead $fill in the blank 61 305 Variable overhead at standard cost fill in the blank 62 -300 Factory overhead controllable variance $fill in the blank 63 5 Indicate if favorable or unfavorable Unfavorable 13. Determine the factory overhead volume variance. Round rate to four decimal places and round your final answer to two decimal places. Normal volume (cases) fill in the blank 65 1,600 Actual volume (cases) fill in the blank 66 -1,500 Difference fill in the blank 67 100 Fixed factory overhead rate $fill in the blank 68 12.1625 Factory overhead volume variance $fill in the blank 69 1,216.25 Indicate if favorable or unfavorable Unfavorable

The production volume of fill in the blank 71 cases was planned at the beginning of August. The variances compare the actual cost and the standard cost of

actual productionbudgeted productionactual production

for the month. Thus, the standard cost must be based on the fill in the blank 73 units of actual production.