Note: You must complete part A before completing parts B and C. per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: was gathered from the first six months of operation regarding this cost: Required: 1. Determine the fixed and variable portions of the utility cost using the high-low method. Round the per unit cost to the nearest cent. 2. Determine the contribution margin per case. Round your answer to the nearest cent. Contribution margin per case $ 3. Determine the fixed costs per month, including the utility fixed cost from part (1). 4. Determine the break-even number of cases per month. cases from Part A when completing this section. case. There is a selling commission of 520 per case. The January direct materials, direct labor, and factory overhead costs are as follows: Part B-August Budgets for August. Inventory planning information is provided as follows: Finished Goods Inventory: Materials Inventory: operating data from January. Required: 5. Prepare the August production budget. 6. Prepare the August direct materials purchases budget. Enter the unit price to the nearest cent. Direct Materials Purchases Budget For the Month Ended August 31 7. Prepare the August direct labor cost budget. For hours required, round to nearest whole hour. For hourly rate, enter to the nearest cent, if required. Genuine Spice Inc. Direct Labor Cost Budget For the Month Ended August 31 8. Prepare the August factory overhead cost budget. If an amount box does not require an entry, leave it blank 9. Prepare the August budgeted income statement, including selling expenses. Genuine Spice Inc. Budgeted Income Statement For the Month Ended August 31 Sales $150,000 Finished goods inventory, August 1 $12,000 Direct materials inventory, August 1 $32 Direct materials purchases 23,231 Directmaterialsinventory,August31Costofdirectmaterialsforproduction23,375248 Direct labor 9,900 Factory overhead 19,735 Finished goods inventory, August 31 7,000 Cost of goods sold Gross profit $91,990 Selling expenses Operating income 30,000$61,990 and B as well as use answers from those parts when completing this section. case. There is a selling commission of $20 per case. The lanuary direct materials, direct labor, and factory overhead costs are as follows: 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: 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. Enter the standard price to two decimal places. Direct Materials Quantity Variance: 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: Indicate if favorable or unfavorable 4. The production volume of cases was planned at the beginning of August. The variances compare the actual cost and the standard cost of X for the month. Thus, th tandard cost must be based on the units of actual production
