Question: Comprehensive Problem 5 Part B: Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part





Comprehensive Problem 5 Part B: Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part A before attempting Part B. You may have to refer back to data presented in Part A and use answers from Part A when completing this section. 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: DIRECT MATERIALS Cost Cream base Natural oils Behavior Variable Variable Units per Case Cost per Unit Direct Materials Cost per Case 100 oz. $0.02 $2.00 30025. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Direct Labor Cost Department Behavior Time per Case Labor Rate per Hour Mixing Variable 20 min. $18.00 Cost per Case $6.00 Filling Variable 5 min. 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Check My Work 0 more Check My Work uses remaining Previous Next>
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