3. COMPRO.05.01 PART.C Comprehensive Problem S Part C Note: This section a continuation from Parts A and B of the comprehensive problem, Be sure you have completed Parts A and B before attempting Part C You may have refer back to datented and as well as use answers from those parts when competing this section bottles Genuine Spice Inc. began operations on January 1 of the curent year. The company produces eight hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-botle cases for 100 per case There is a sling commission of $20 per case. The January direct materials, direct labor, and factory overhead couts are as follows DIRECT MATERIALS Cest Units Cost Direct Materials Sehavior per Case per Unit Cost per Case Dream base Variable 300 $0.021 $2.00 Naturals Varable 30 0.30 9.00 Bottle (8) Varable 12 0.50 6.00 $17.00 DIRECT LABOR Co Department Time Labor Rate Direct Labor Behavior per Case per Hour Cost per Case Maing Vanable 20 m $18.00 16.00 Villing 24.45 120 $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Med $600 Factylase 14,000 Topment depreciation Food 4,100 660 $20.500 1212222 Part C-August Variance Analysis During September of the current year, the order was asked to perform variance analyses for August. The January operating data provided the standart poces, rates, mes, 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 fo Actual Direct Materials Actual Direct Materials Price per Unit Cream base Natural 10.32 per (-) $0.42 Many Quantity per Case 31 12.5 bottles Actual Direct Labor Actual Direct Laber Rate 118.20 14.00 Actual variable overhead $305,00 Normal volume 1400 cases Time per Case 19.50 min 5.40mm Toff 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 Filing Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard 13/1/2013, 2:22 P 9 of 9 Direct Labor Time Variance: Mixing Department Filling Department Actual time (hours) Standard time (hours) Difference Standard rate Direct labor time variance Indicate if favorable or unfavorable. The change in the x $ caused the labor rate variances. This change, responsible for the direct labor time variance. have been 12. Determine and interpret the factory overhead controllable variance. Enter all amounts as positive numbers. Actual variable overhead Variable overhead at standard cost Factory overhead controllable variance Indicate if favorable or unfavorable The factory overhead controllable variance was caused by the variance in 13. Determine and interpret the factory overhead volume variance. When determining the fixed factory overhead. rate, round the factory overhead rate to two decimal places and the factory overhead volume variance to whole dollars. Enter all amounts as positive numbers. Normal volume (cases) Actual volume (cases) Difference Fixed factory overhead rate Factory overhead volume variance Indicate if favorable or unfavorable The volume variance indicates the cost of $ 14. 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 parts (6) and (7)?) 12/1/2022, 2:22 PM