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    Argosy University/ Phoniex University/
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Category > Accounting Posted 20 Aug 2017 My Price 13.00

Genuine Spice Inc.

Genuine Spice Inc. began operations on January 1, 2016. The company produces eight-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 Behavior

units per Case

Cost per unit

direct materials Cost per Case

Cream base

Variable

100 ozs.

$0.02

$  2.00

Natural oils

Variable

30 ozs.

0.30

9.00

Bottle (8-oz.)

Variable

12 bottles

0.50

     6.00

 

 

 

 

$17.00

 

 

 

diReCT LaBoR

 

 

 

department

Cost Behavior

Time per Case

Labor Rate per hour

direct Labor Cost per Case

Mixing

Variable

20 min.

$18.00

$6.00

Filling

Variable

  5

14.40

  1.20

 

 

25 min.

 

$7.20

 

faCToRy oVeRhead

 

 

Cost Behavior

Total Cost

Utilities

Mixed

$       600

Facility lease

Fixed

14,000

Equipment  depreciation

Fixed

4,300

Supplies

Fixed

          660

 

 

$19,560

 

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Aug 2017 09:08 AM My Price 13.00

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