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

Cost Behavior Units p/Case Cost p/Unit DirectMaterialsCost p/Case Cream base Variable 100 oz $0.02 $2.00

Natural oils Variable 30 oz $0.30 $9.00

Bottle (8 oz) Variable 12 bottles $0.50 $6.00

Total

$17.00

DIRECT LABOR

Dept Cost Behavior Time p/Case Labor Rate p/Hour Direct Labor Cost p/Case Mixing Variable 20 minutes $18.00 $6.00

Filling Variable 5 minutes $14.40 $1.20

Total 25 minutes $7.20

FACTORY OVERHEAD

Cost Behavior Total Cost

Utilities Mixed $600

Facility lease Fixed $14,000

Equipment depreciation Fixed $4300 Supplies Fixed $660

Total $19,560

I need to find the following:

1) Determine the fixed and variable portion of the utility cost using the high-low method

2) Determine the contribution margin per case

3) Determine the fixed costs per month, including the utility fixed cost