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Please show work Genuine Spice Inc. began operations on January 1, 2016. The company produces a hand and body lotion in an eight-ounce bottle called
Please show work 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 S100 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 per Unt Cost per Case Direct Materials Cost Behavior Variable Variable Variable Units Cream base Natural oils Bottle (8-oz.) per Case 100 ozs 30 ozs 12 bottles S0.02 0.30 0.50 $2.00 9.00 6.00 S17.00 DIRECT LABOR Department Mixing Filling Cost Behavior Variable Variable Labor Rate per Hour $18.00 14.40 Direct Labor Cost per Case $6.00 1.20 $7.20 per Case 20 min. 25 min FACTORY OVERHEAD Utilities Facility lease Equipment depreciation Supplies Cost Behavior Total Cost S600 14,000 4,300 660 $19,560 Mixed Fixed Fixed Fixed
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