ONLY REQUIREMENTS 9-12. I AM AWARE 1-8 IS 100% CORRECT. If any sections I input for 9-12 are incorrect, please identify the changes in your answer. Thank you.

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 Units Direct Materials Behavior per Case per Unit Cost per Case Creambase Variable 10002 50.02 $ 200 Naturalis Variable 3002 030 9.00 Bottle 18-02) Variable 12 bottles 0.50 600 $17.00 DIRECT LABOR Department Mixing Com Behavior Variable Variable Labor Rate per Hour 518.00 Direct Labor Cost per Case 56.00 1.20 5720 per Case 20 min 5 25 min Filing FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mord $ 600 Facility lease Fixed 14000 Equiment depreciation Fixed 4300 Supplies Fixed 660 $19.560 Part A. Break-even Analysis The management of Quivers Inc. 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 Month January February March April May June Lilito 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 Estimated finished goods inventory, August Desired finished goods inventory, August 31 Cases 300 175 Los $12,000.00 $ 7,000.00 111 Materials Inventory Instructions Estimated materials inventory, August 1 Desired materials inventory, August 31 ream Base (oz. Ji's (oz. lonels 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. Part 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 Price ger $ 0.016 Actual Direct Materials Puantity 102 Cream Base (oz.) Natural Oils (oz.) Bottles $ 0.32 31 $ 0.42 12.5 Activity Actual Direct Labor Rate Actual Direct Labor Time per Case 19.50 5.60 $ 18.20 Mixing Filling $ 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 actuallabor rate to be less than standard. Intructions 10. Determine and interpret the direct materials price and quantity variances for the three materials. 11. Determine and interpret the direct laborrate 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 #1: Determine the fixed and variable portion of the utility cost using the high- High-Low Method Variable Cost per Unit Difference in Total Cost : Difference in Production 0.20 140 700 Total Cost X Variable Cost per Unit 0.20 0.20 Units of Product ion 1.200 500 High Point Low Point $ 740.00 600.00 Fixed Costs 55UU.UU S 500.00 1111 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 AA 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 (U). Total Fixed Costs Utilities (see High-Low Method] Facility lease Equipment depreciation Supplies $ 500 $ 14,000 $ 4,300 660 $_19460 Requirement #4: Determine the break-even number of cases per month. Break-even Analysis Fixed Costs Break-even Sales (units) 350 Unit Contributio Margin $ 11 19,460.00 55.60 REQUIREMENT #5: Develop the production budget. Quivers Inc. Production Budget For the Month Ended August 31 Cases Expected cases to be 1,500 sold Plus desired ending 175 inventory Total units required 1,675 Less estimated beginning -300 inventory Total units to be 1,375 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 137,500 41,250 16,500 Plus desired ending inventory 1,000 360 240 Total units required 138,500 41,710 16,740 Less estimated beginning inventory -250 -290 -600 Total Raw Materials Units x Volume = Total Cream Base 100 1,375 137.500 30 1,375 41.250 Natural Oils Total materials to be purchased 138,250 41,320 16,140 12 1,375 16.500 Bottles $0.02 $0.30 $0.50 xUnit Price Total direct materials to be purchased $2,765 $12,396 $8,070 $23,231 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 1,375 20 60 458 Mixing Filling Total Mixing 458 115 1,375 5 60 115 Filling Hours required for production of: Ophelia Wax Product x Hourly rate Total direct labor cost $ 18.00 $ 8,244.00 $ 14.40 $ 1,656.00 ###### Requirement #8: Develop the factory overhead cost budget. Quivers Inc. Factory Overhead Cost Budget For the Month Ended August 31 Total Fixed Variable Total Cost Cases 1,375 1,375 $ Cost 500 $ 500 Fixed Cost [from Questior Variable Utility Cost $ 275 0.20 $ 275 Utilities Facility Lease Equipment Depreciation Supplies $ $ $ $ 500 14,000 4,300 660 775 14000 4300 660 Total factory overhead cost $ 19,735 Requirement #9: Create the budgeted income statement Sales Selling Expenses Units X 1,500 1,500 Price = $ 100.00 $ $ 20.00 $ Total 150,000 30,000 $ 150,000 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 $12,000 Direct materials: Direct materials inventory, Augusti $ 392 Direct materials purchases (from Question $ 23,231 61 Cost of direct materials available for use $ 23,623 Less direct materials inventory, August 31 $ (248) Cost of direct materials placed in production $ 23,375 Direct labor (from Question 7] $ 9.900 Factory overhead [from Question 8] $ 19,735 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 250 290 600 $ 392 Direct materials inventory, Augi Direct materials inventory, Augi 1,000 360 240 $ 248 Rate $ $ 53,010 65,010 17,000) S Cream Base (oz. Oils (oz.) Bottels (oz.) S 0.02 0.30 0.50 S $ 58,010 $ 91,990 $ (30,000) $ 61,990 Requirement #10: Determine the direct materials variance. Direct Materials Price Variance Cream Base Natural Oils Bottles Actual Quantity Cream Base Vatural Oil Bottles Cases 153,000 46,500 18,750 Amount Total $ $ Actual Price Standard Price Difference "Actual Quantity (Units) Disex Mladena's Prize lanence 0.02 0.02 ($0.00) 153,000 $(612.00) $ 0.32 $ $ 0.30 $ $0.02 46,500 0.42 0.50 ($0.08) 18,750 $930.00 $(1,500.00) Favorable Favorable Unfavorable Analysis Creambase is favorable Natural oilis unfavorable Bottles are favorable Direct Materials Quantity Variance Cream Base Natural Oils Bottles Standard Quantity Cream Base Votural Oils Botties Cases Amount Toxa/ Actual Quantiy Standard Quantity Difference Standard Price LMUT/XPas 4axy 153,000 46,500 18,750 150,000 45,000 18,000 3,000 1,500 750 $ 0.02 $ 0.30 $ 0.50 $ 60.00 $450.00 $ 375.00 Unfavorable Unfavorable Unfavorable Analysis Cream base is unfavorable Natural oilis unfavorable Bottles are unfavorable Requirement #11: Determine the direct labor variance. Filling Direct Labor Rate Variance Mixing Filling Department Departmen Actual Rate $ 18.20 $ 14.00 Standard Rate $ 18.00 $ 14.40 Difference $0.20 ($0.40) * Actual Time (Hours) 488.0 140.0 Direct Labor Rate Variance $97.60 1956.001 Decision Unfavorable Favorable Actual Time Mixing Units Minutes Hours Total Analysis Filling Mixing department is unfavorable departments is favorable Direct Labor Time Variance Mixing Filling Department Departmen Actual Time 488.0 140.0 Standard Time 500 125 Difference (12.0) 15 * Standard Rate $ 18.00 $ 14.40 Direct Labor Time Variance $216.00 Decision Favorable Unfavorable Standard Time Mixing Filling Units Minutes Hours Total Analysis Mixing department is favorable Filling department is unfavorable Requirement #12: Determine the factory overhead variance. Variance overhead (utility cost) at standard cost Cases $ Factory Overhead Controllable Variance Actual variable overhead 305.00 Variable overhead at standard cost 300.00 Fachwowerhead carmalab (carande $5.00 Destin Unfavorable Total fixed factory overhead Tora/ Cases Factory Overhead Volume Variance Normal volume (cases) 1,600 Actual volume (cases) 1,500 Difference 100.0 'Fixed factory overhead rate $ 121,625.00 $1,216.25 Unfavorable Fixed factory overhead rate Totalfixed factory overhead Toxca/ Analysis Factory overhead volume variance is unfavorable