- - BIUab x, X AD - SESSIE 2 - AaBb 1 Normal AaBbC AaBbC AaBbCcl Aab 1 No Spac... Heading 1 Heading 2 Title a z Font Paragraph Styles Factory Overhead Cost Behavior Total Cost Mixed Utilities Facility lease Equipment depreciation Supplies Fixed Fixed Fixed $ 230. $12,043 $ 3,600. $ 600 $16.473 2017 $263 A. Break-Even Analysis The management of Natural Fragrance, 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: Case Production Utility Total Cost January 300 $230 February 600 March 1,000 $300 900 $292 $280 June 825 $285 Instructions 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 cost per month, including the utility fixed cost from part (1) 4. Determine the break-even number of cases per month April May B- August Budgets During July of the current year, the management of Natural Fragrance, Inc. asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1.300 cases at $80 per case for August. Inventory planning information is provided as follows: Focus English (United States) o arch wa e 11 A A A IU - ab X, X A E A E S E | AaBbc AaBbc AaBbc AaBbccl Aab T Normal 1 No Spac... Heading 1 Heading 2 Title l Font Paragraph Styles 8 = 1. Natural Fragrance, Inc. began operations on January 1, 2017. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $80 per case. There is a selling commission of $16 per case. The January direct materials, direct labor, and factory overhead cost are as follows. Direct Materials Cost Behavior Units per Case Cost Per Unit Direct Materials Cost per Case Cream base Natural oil Bottle (8-oz.) Variable Variable Variable 72 oz. 24 ozs $0.015 $0.250 $0.400 $1.08 $6.00 $4.80 $11.88 12 bottles Direct Labor Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Department Mixing Filling Variable Variable 16.8 min. 42 min 21.0 min $15.00 $12.00 $4.20 $0.84 $5.04 Factory Overhead Cost Behavior Total Cost Utilities Facility lease Equipment depreciation Supplies Mixed Fixed Fixed Fixed $ 230. $12,043 $ 3.600 $ 600 516 473 D. Focus B2 nglish (United States)