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Quivers Inc. began operations on January 1 of the current year. The company produces eight-ounce bottles of jet wax called Ophelia Shine. The wax
Quivers Inc. began operations on January 1 of the current year. The company produces eight-ounce bottles of jet wax called Ophelia Shine. The wax 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 Direct Materials Cost Cost Behavior Units per Case Cost per Unit per Case Cream base Variable 100 oz $0.02 $2.00 Natural oils Variable 30 oz $0.30 $9.00 Bottle (8 oz) Total Variable 12 bottles $0.50 $6.00 $17.00 DIRECT LABOR Direct Labor Cost per Department Cost Behavior Time per Case Labor Rate per Hour Case Mixing Filling Variable 20 minutes Variable Total 5 minutes $18.00 $14.40 $6.00 $1.20 25 minutes $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed Facility lease Fixed $600 $14,000 Equipment depreciation Fixed $4300 Supplies Fixed $660 Total $19,560
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