Question

Please answer this Question in a Table Clearly. Rquirements is in second picture. Answer what ever is blank and number the question and parts.

Better By the Numbers began operations on January 1, 2018. The company produces eight ounce bottles of hand and body lotion called Radiant One. The lotion is sold wholesale in 12- bottle cases for $100 per case. There is a selling commission of $20 per case. January 2018 direct materials, direct labor and factory overhead costs are as follows: DIRECT MATERIALS Cost Units per Cost per Behavior Case unit variable 100 oz. $ 0.02 variable 30 oz. $ 0.30 variable 12 bottles $ 0.50 Nutrient base Essential oils Bottle (8-oz.) Direct Materials Cost per Case $ 2.00 9.00 6.00 $ 17.00 Department Cost Behavior variable variable DIRECT LABOR Time per Labor Rate Case per Hour 20 min. $ 18.00 5 min. $ 14.40 25 min. Mixing Filling Direct Labor Cost per Case $ 6.00 1.20 $ 7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities mixed $ 600 Facility lease fixed 14,000 fixed Equipment depreciation 4,300 fixed Supplies 660 $ 19,560

Answer 1

Direct Material Price Variance
	Cream Base	Natural Oils	Bottles
Actual Price	$                            0.016	$                       0.32	$                   0.42
Standard Price	$                              0.02	$                       0.30	$                   0.50
Difference	$                         (0.004)	$                       0.02	$                (0.08)
Actual Quantity	153000	46500	18750
Direct Material Price Variance	$                       (612.00)	$                  930.00	$        (1,500.00)
	Favorable	UnFavorable	Favorable

Actual Quantity
Cream Base = 1500 x 102 = 153000
Natural Oils = 1500 x 31 = 46500
Bottles = 1500 x 12.5 = 18750

Direct Material Quantity Variance
	Cream Base	Natural Oils	Bottles
Actual Quantity	153000	46500	18750
Standard Quantity	150000	45000	18000
Difference	3000	1500	750
Standard Price	$                              0.02	$                       0.30	$                   0.50
Direct Material Quantity Variance	$                            60.00	$                  450.00	$              375.00
	UnFavorable	UnFavorable	UnFavorable

Standard Quantity
Cream Base = 1500 x 100 = 150000
Natural Oils = 1500 x 30 = 45000
Bottles = 1500 x 12 = 18000

Direct labor rate Variance
	Mixing	Filling
Actual Rate	$                            18.20	$                     14.00
Standard Rate	$                            18.00	$                     14.40
Difference	$                              0.20	$                     (0.40)
Actual time	487.50	140.00
Direct labor rate Variance	$                            97.50	$                  (56.00)
	UnFavorable	Favorable

Actual time taken
Mixing = 1500 x 19.5 / 60 = 487.50
Filling = 1500 x 5.6 / 60 = 140

Direct labor time Variance
	Mixing	Filling
Actual hours	487.5	140
Standard hours	500	125
Difference	$                         (12.50)	$                     15.00
Standard rate	$                            18.00	$                     14.40
Direct labor time Variance	$                       (225.00)	$                  216.00
	Favorable	UnFavorable

Standard time taken
Mixing = 1500 x 20 / 60 = 500
Filling = 1500 x 5 / 60 = 125

Actual Variable Overhead	$                         305.00
Variable Overhead at standard rate	$                         300.00
Factory Overhead Controllable Variance	$                              5.00
	UnFavorable

Normal Volume (Cases)	1600
Actual Volume (Cases)	1500
Difference	100
Fixed Factory Overhead Rate	$                            12.16	=(19560-100)/1600
Factory Overhead Volume Variance	$                      1,216.25
	Unfavorable