part A

Genuine Spice in began operations on January 1 of the current year. The company produces Bounce bottle of hand and body lotion called Eternal Beauty The ection 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 we as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Cost per Case Gram base Variable 100 30.02 $2.00 Nos Variable 30 0.30 9.00 Bole (8-0) Variable 12 boss 0.50 317.00 DIRECT LADON Department Cost Behavior Time per Case Labor Rate per hour Cost per Case Variable 20 min $18.00 5500 ang Variable 5 14.40 1.20 25 min 57.20 FACTORY OVERHEAD Cost Be To Cost Mund BOO Facy se Faced 14.000 Equement depreciation Food 4.300 Fand 500 STUS PAA-reak Even Analysis The management of Genuine Spice in wishes to determine the summer of cases required to break even per month. The tricost, which is part of factory over and out. The following information was gathered from the first month of pestion regarding the cost Month Care Production inity Total Cost 500 5600 January F March 800 660 1.200 740 720 1.100 May 350 690 May 690 June 1,025 705 Required-Part : Determine the rand variable portions of the unity cost using the bow method Hound your per un cost to two decimal places 2 Determine the con margin per case. Round your answer to two decimal places 3. Determine the feed costs per month, including the sury Mixed cost from part (1) Refer to the dists of Amount Descriptions for the exact wording of the anno choice for text entries Determine the break-even number of cases per month. Part 8 - August Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to preparo August manufacturing and income statement budgets. Demand waspected be 1.500 cases at stopper case for August. Inventory planning information is provided as follows Finished Goods Inventory Cases Cost 300 $12.000 mated fished goods invertory, August 1 Desired tished goods inventory, August 31 175 7.000 Matra Inary Cream Base (rs) Oila Botties fos) (bottles) 200 500 360 240 Essmated materials inventory, August 1 Desired materials inventory, August 31 250 1,000 There was negligible work in process inventory assumed for either the beginning or end of the month Thus, none was assumed. In addition, there was no change in the cont per unitor estimated units per case operating data from January Required-Parts: 5. Prepare the August production budget Prepare the August direct material purchases budget 7. Prepare the Augustine Abor cost budget. Round the hours required for production to the nearest hour 8. Prepare the August factory overhead cost budget an amount bor does nor require an entry Inave It Bank Entries of more (0) will be cloured automatically by CNOW) 9. Prepare the August budgeted income statement, including selling expenses Enteral amounts as positive numbers Part C-August Variance Analysis Durina Secamber of the current wear the controller was asked to Derfor variance analyses for Acoust. The January operating data provided the standard once de mes and Part C-Auguet Vartance Analysis During September of the current year, the controler was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, imes, 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 Tollows Cream base Actual Direct Materiais Price per Unit Quantity per Case $0.016 per oz. 102 075 $0.32 per oz. 31 ZS $0.42 per bottle 12.5 bottes Natural oils Bottle (8-0) Actual Direct Labor Rate $18.20 Actual Direct Labor Time per Case 19.50 min Mating 14.00 5.60 min Actual variable overhead $305.00 Normal volume 1,600 casos 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 Mang Departmented a higher grade labor classification during the month thus causing the actual labor rate to exceed standard. The Fing Department sed a lower grade labor Maung Filling 14.00 5.60 min Actual variable overhead Normal volume $305.00 1.600 ch 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 cuscification during the month, thus causing the actual labor rate to be less than standard. Required-Part: 10. Determine and interpret the direct materie price and quantity vartances for the three materials. Round your price values for Cream Base to three decimal places and Natural Ous & Bones to no decimal places 11. Determine and interpret the direct laborate and sme variance for the two departments. Do not round hours. Round your answers to mo decimal places. 12. Determine and interpret me factory overhead controlable variance 13. Determine and interpret the factory overhead vone wance Rand rate to our comar places and round your ma aniwer to two deca! places 14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (1) based on the actual 1.500 case production volume rather than the planned 1.250 cases of production sed in the budgets for parts (6) and (7) "Negative amount should be indicated by the minus. Enter a favorable variance as a negative number using a mon and an unfavorable variance as a positive number Dorssons Part A Determine the end reportions of the cost using the high low method Round your per un cost to two decimal places At the High Point At the Low Point Vascosto Youndco 2m the contro per se Round your answer to two decimal places. S De the focus per month, including the utility fixed cost from parf (). Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries cases 4. Determine the break-even number of cases per month