using a minus sign and an unfavorable variance as a positive number. Do not round hours. Round your answers to two decimal places. The change in the caused the labor rate variances. This change have been responsible for the direct labor time variance. Part C-August Variance Analysis produced during August, which was 250 more cases than planned at the beginning of the month. Actual data for August were as follows: Actual variable overhead $305.00 Normal volume 1,600 cases 9. Prepare the August budgeted income statement, including selling expenses. For those boxes in which you must enter subtractive or negative numbers use a minus sign. \begin{tabular}{|l|c|c|} \hline \multicolumn{3}{|c|}{ FACTORY OVERHEAD } \\ \hline & Cost Behavior & Total Cost \\ \hline Utilities & Mixed & $600 \\ \hline Facility lease & Fixed & 14,000 \\ \hline Equipment depreciation & Fixed & 4,300 \\ \hline Supplies & Fixed & 660 \\ \hline & & $19,560 \\ \hline \end{tabular} 7. Prepare the August direct labor budget. Round the hours required for production to the nearest hour. Enter all amounts as positive numbers. \begin{tabular}{|l|l|l|l|} \hline & \multicolumn{2}{|c|}{ Genuine Spice Inc. } \\ \hline & Direct Labor Cost Budget \\ \hline & For the Month Ended August 31 \\ \hline Hours required for production of: & & \\ \hline \end{tabular} Genuine Spice Inc. Production Budget For the Month Ended August 31 Cases 1. Determine the fixed and variable portions of the utility cost using the high-low method. Round your per unit cost to two decimal places. 2. Determine the contribution margin per case. Round your answer to two decimal places. per case Genuine Spice Inc. Budgeted Income Statement For the Month Ended August 31 \begin{tabular}{|l|l|} \hline Sales \\ \hline Finished goods inventory, August 1 \\ \hline Direct materials inventory. August 1 \\ \hline Direct materials purchases \\ \hline Direct materials inventory. August 31 \\ \hline Cost of direct materials for production \\ \hline Direct labor \\ \hline Factory overhead \\ \hline Finished goods inventory, August 31 \\ \hline Cost of goods sold \\ \hline Gross profit \\ \hline Selling expenses \\ \hline Income before income tax \\ \hline \end{tabular} Materials Inventory: 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 operating data from January. The factory overhead controllable variance was caused by the variance in \begin{tabular}{|l|l|l|c|c|} \hline \multicolumn{5}{|c|}{ DIRECT LABOR } \\ \hline Department & Cost Behavior & Time per Case & Labor Rate per Hour & Cost per Case \\ \hline Mixing & Variable & 20min. & $18.00 & $6.00 \\ \hline Filling & Variable & 5 & 14.40 & 1.20 \\ \hline & & 25min. & & $7.20 \\ \hline \hline \end{tabular} 1. Determine the fixed and variable portions of the utility cost using the high-low method. Round your per unit cost to two decimal places. 2. Determine the contribution margin per case. Round your answer to two decimal places. 3. Determine the fixed costs per month, including the utility fixed cost from part (1). Refer to the lists of Amount Descriptions for the exact wording of the answer choices for text entries. 4. Determine the break-even number of cases per month. \begin{tabular}{|l|l|l|l|l|l|l|l|} \hline & & Direct Materials Price Variance \\ \hline & & & & Natural Oils \\ \hline \end{tabular} The fluctuation in caused the direct material price variances. All the Direct material quantity variances were indicating 3. Determine the fixed costs per month, including the utility fixed cost from part (1). Refer to the lists of Amount Descriptions for the exact wording of the answer choices for text entries. Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion 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: The management of Genuine Spice Inc. wishes 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: 4. Determine the break-even number of cases per month. cases Part B-August Budgets During July of the current year, the management of Genuine Spice Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,500 cases at $100 per case for August. Inventory planning information is provided as follows: Finished Goods Inventory: 6. Prepare the August direct materials purchases budget. For those boxes in which you must enter subtractive or negative numbers use a minus sign. 5. Prepare the August production budget. For those boxes in which you must enter subtractive or negative numbers use a minus sign. unfavorable variance as a positive number. Round rate to four decimal places and round your final answer to two decimal places. The volume variance indicates the cost of (6) and (7)? The production volume of cost must be based on the cases was planned at the beginning of August. The variances compare the actual cost and the standard cost of units of actual production. for the month. Thus, the standard Required-Part B: 5. Prepare the August production budget.* 6. Prepare the August direct materials purchases budget. * 7. Prepare the August direct labor budget. Round the hours required for production to the nearest hour. 8. Prepare the August factory overhead budget. If an amount box does not require an entry, leave it blank. (Entries of zero ( 0 ) will be cleared automatically by CNOW.) 9. Prepare the August budgeted income statement, including selling expenses. * For those boxes in which you must enter subtractive or negative numbers use a minus sign