REQUIREMENTS 1-4 HAVE ALREADY BEEN ANSWERED BELOW SO PLEASE DO NOT ATTEMPT TO REANSWER.

I ONLY NEED ASSISTANCE WITH REQUIREMENTS 4-8 ABOVE. THANK YOU AGAIN.

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 per Case per Case Cream base Natural oils Direct Materials Cost Cost per Unit S0.02 $2.00 Variable Variable Variable 100 30 OZ $9.00 50.30 $0.50 12 bottles Bottle (8) Total $6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case $6.00 $1.20 $18.00 Mixing Filling Total $14.40 $7.20 Variable 20 minutes Variable 5 minutes 25 minutes FACTORY OVERHEAD Cost Behavior Utilities Mixed Facility lease Fixed Equipment depreciation Fixed Supplies Fixed Total Total Cost $600 514,000 $4300 $660 $19,560 3 4 5 Use this table to help ensure you use the correct worksheet for each requirement Requirement Requirement Description 1 Determine the fixed and variable portion of the utility cost using the high-low method. 2 Determine the contribution margin per case. Determine the fixed costs per month, including the utility fixed cost Determine the break-even number of cases per month. Develop the production budget Develop the direct materials purchases budget 7 Develop the direct labor cost budget. Develop the factory overhead cost budget Create the budgeted income statement. Determine the direct materials variance 11 Determine the direct labor variance 12 Determine the factory overhead variance, 6 Worksheet Name 1 - High-Low Method 2 - Contribution Margin 3 - Fixed Costs 4 - Break-even Analysis 5. Production Budget 6- Direct Materials Purchases 7. Direct Labor Cost 8 - Factory Overhead Cost 9. Budgeted Income Statement 10 - Direct Materials Variance 11 - Direct Labor Variance 12 - Direct Factory Overhead Variance 8 9 10 Part A. Break-even Analysis The management of Quivers Ino.wants to determine the number of cases required to break even per month. The utilities cost, which is part of factory overhead is a mixed cost. The following information was gathered from the first six months of operation regarding this cost: Part B. Budgets During July of the current year, the management of Quivers Inc. asked the controller, Robin, to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases of jet wax at $100 per case for August. Inventory planning information is provided as Finished Goods Inventory Cosi Month January February March April May June Utility Total Lase Produce Cost 500 600.00 800 $ 660.00 1,200 $ 740.00 1,100 $ $ 720.00 950 $ 690.00 1,025 $ $ 705.00 Cases 300 175 Estimated finished goods inventory, August Desired finished goods inventory, August 31 $12,000.00 $ 7,000.00 111 Materials Inventory Instructions Estimated materials inventory, August 1 Desired materials inventory, August 31 de am Base (oz. Oils (oz. loatels (oz. 250 290 600 1,000 360 240 1. Determine the fixed and variable portion of the utility cost using the high-low method. 2. Determine the contrinution margin per case. 3. Determine the fixed costs per month, including the utility fixed cost from question (1). 4. Determine the break-even number of cases per month 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 cost per unit or estimated units per case operatina data from January. Instructions 5. Prepare the August production budget. 6. Prepare the August direct materials purchases budget. 7. Prepare the August direct labor cost budget. Round the hours required for production to the nearest hour. 8. Prepare the August factory overhead cost budget. 9. Prepare the August budgeted income statement, including selling expenses. Pant C. August Variance Analysis During September of the current year, Robin was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, 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 follows: Material Actual Direct Materials Actual Direct Materials Puantito Price ger $ 0.016 102 Cream Base (oz.) Natural Oils (oz.) 0.32 31 Bottles 0.42 12.5 Activity Actual Direct Labor Rate Actual Direct Lagor Time ger Case 19.50 5.60 $ Mixing Filling 18.20 14.00 $ $ Actual Variable Overhead Normal Volume (Cases) 305.00 1,600 The prices of the materials were different from 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 classification during the month, thus causing the actuallaborrate to be less than standard. Intruct Ons 10. Determine and interpret the direct materials price and quantity variancestor the three materials. 11. Determine and interpret the direct labor rate and time variances for the two departments. Round hours to the nearest hour. 12. Determine and interpret the factory overhead controllable variance. 13. Determine and interpret the factory overhead volume variance. Assess why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1.500-case production volume rather than the planned 1,375 cases of production used in the budgets for questions (6) and (7)? REQUIREMENT #5: Develop the production budget Quivers Inc. Production Budget For the Month Ended August 31 Cases Expected cases to be sold Plus desired ending inventory Total units required Less estimated beginning inventory Total units to be produced Requirement #6: Develop the direct materials purchases budget. Quivers Inc. Direct Materials Purchases Budget For the Month Ended August 31 Cream Natural Bottles Base (oz.) Oils (oz.) (bottles) Units required for production 12 12 12 Plus desired ending inventory 1,000 360 240 Total units required 2,200 720 1,392 Less estimated beginning inventory -250 -290 -600 Total Raw Materials Units x Volume = Total Cream Base 12 100 1.200 1826 - 1140 12 30 360 Natural Oils Total materials to be purchased 1,950 430 792 686 12 12 144 Bottles $0.02 $0.30 $0.50 xUnit price Total direct materials to be purchased $39 $129 $396 $564 Requirement #7: Develop the direct labor cost budget. Quivers Inc. Direct Labor Cost Budget For the Month Ended August 31 Labor Units x Production Time Hour = Total 12 0 Mixing Filling Total Mixing 4 1 12 0 Filling 15 Hours required for production of: Ophelia Wax Product * Hourly rate Total direct labor cost $ 18.00 $ 72.00 $ 14.40 $ 14.40 $ 86.40 Requirement #8: Develop the factory overhead cost budget. Quivers Inc. Factory Overhead Cost Budget For the Month Ended August 31 Cost Total Fixed Variable Total Cost Cases Fixed Cost [from Question 3] Variable Utility Cost Utilities Facility Lease Equipment Depreciation Supplies Total factory overhead cost Requirement #9: Create the budgeted income statement Units X Price = Total Sales Selling Expenses Cream Base (oz.) Oils (oz) Bottels (oz) Total Quivers Inc. Budgeted Income Statement For the Month Ended August 31 Sales Finished goods inventory, August 1 Direct materials: Direct materials inventory, August 1 Direct materials purchases [from Question 6] Cost of direct materials available for use Less direct materials inventory, August 31 Cost of direct materials placed in production Direct labor [from Question 7] Factory overhead [from Question 8) Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, August 31 Cost of goods sold Gross profit Selling expenses Income from operations Direct materials inventory, August 1 Direct materials inventory, August 31 Rate Cream Base (oz.) Oils (oz.) Bottels (oz.) REQUIREMENT #1: Determine the fixed and variable portion of the utility cosi using the high- High-Low Method Variable Cost per Unit Difference in Total Cost Difference in Production 700 0.20 11 140 Total Cost Variable Cost per Unit $ 0.20 0.20 Units of Product ion X High Point Low Point $ $ / 40.00 600.00 II 11 A-65 1.200 500 Fixed Costs $ 500.00 S 500.00 X REQUIREMENT #2: Determine the contrinution margin per case. Contribution Margin Selling Price $ 100.00 Less variable costs per case: Direct materials Direct labor Utilities (see High-Low Method) Selling expenses Total variable costs per case 69 69 17.00 7.20 0.20 20.00 $ 44.40 Contribution margin per case $ $ 55.60 REQUIREMENT #3: Determine the fixed costs per month, including the utility fixed cost from question (1). Total Fixed Costs Utilities (see High-Low Method] Facility lease Equipment depreciation Supplies 500 $ 14,000 $ 4,300 660 $ 19,460 Requirement #4: Determine the break-even number of cases per month. Break-even Analysis Fixed Costs Break-even Sales (units) 350 Unit Contributio n Margin 55.60 $ 19,460.00