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Genuine Spice Inc. began operations on January 1, 2016. The company produces a hand and body lotion in an eight-ounce bottle 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 $0.02 0.30 Cream base Natural oils Bottle (8-oz.) Variable Variable Variable 100 ozs. 30 ozs. 12 bottles Direct Materials Cost per Case $2.00 9.00 6.00 $17.00 0.50 DIRECT LABOR Department Cost Behavior Variable Variable Time per Case 20 min. E Labor Rate per Hour $18.00 14.40 Mixing Filling Direct Labor C ost per Case $6.00 1.20 $7.20 5 25 min. FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560