Since, Part A has multiple subparts, I have answered all the subparts (4) of Part A.
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Part A)
1)
The fixed and variable portion of the utility cost with the use of high-low method is determined as below:
Variable Cost Per Case = (Total Utility Cost at Highest Level of Production - Total Utility Cost at Lowest Level of Production)/Highest Level of Production - Lowest Level of Production
Substituting values in the above formula, we get,
Variable Utility Cost = (740 - 600)/(1200 - 500) = $0.20 per case
Fixed Utility Cost = Total Utility Cost at Highest Level of Production - Variable Utility Cost at Highest Levels of Production = 740 - 1,200*.20 = $500 (the same value of fixed cost will be derived for any level of production)
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2)
The contribution margin per case is determined as below:
Selling Price Per Case | 100.00 | |
Less Variable Costs: | ||
Direct Material | 17.00 | |
Direct Labor | 7.20 | |
Variable Overheads (Utilities) | 0.20 | |
Selling Expenses (Selling Commission) | 20.00 | |
Total Variable Costs Per Case | 44.40 | |
Contribution Margin Per Case | $55.60 |
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3)
The total value of fixed costs for the month is arrived as below:
Fixed Costs for the Month = Facility Lease + Equipment Depreciation + Supplies + Utilities
Substituting values in the above formula, we get,
Fixed Costs for the Month = 14,000 + 4,300 + 660 + 500 = $19,460
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4)
The break-even number of cases per month is determined as below:
Break-Even Number of Cases Per Month = Fixed Costs for the Month/Contribution Margin
Substituting values in the above formula, we get,
Break-Even Number of Cases Per Month = 19,460/55.60 = 350 cases
Comprehensive Problem 5 Amount Descriptions Questions (Part A) Instructions Instructions Genuine Spice Inc. began opera...
Instructions Amount Descriptions Questions (Part A) Production Budget Instructions Genuine Spice Inc. began operations on January 1 of the current year. 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 percase. There is a soling 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 Cost per Case...
Genuine Spice Inc. began operations on January 1 of the current year. 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 Cost per Case Cream base Variable 100 oz. $0.02 $...
Genuine Spice Inc. began operations on January 1 of the current year. 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....
Genuine Spice Inc. began operations on January 1 of the current year. 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 Cost per Case 100 oz $0.02 $2.00 Cream base Variable...
PLEASE ANSWER ONLY # 11, 12, 14 as on the pictures bellow and only the parts that are wrong. Thank you. Genuine Spice Inc. began operations on January 1 of the current year. 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...
Genuine Spice Inc. began operations on January 1 of the current year. 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 Cost per Case Cream base Variable 100 oz. $0.02 $ 2.00...
Comprehensive Problem 5 Part C: Note: This section is a continuation from Parts A and B of the comprehensive problem. Be sure you have completed Parts A and B before attempting Part C. You may have to refer back to data presented in Parts A and B as well as use answers from those parts when completing this section. Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and...
Genuine Spice Inc. began operations on January 1 of the current year. 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 Cost per Case Cream base Variable 100 oz. $0.02 $...
Please answer Part C in Order Better By the Numbers began operations on January 1, 2018. The ounce bottles of hand and body lotion called Radiant One. The lo bottle cases for $100 per case. There is a selling commission of V 1, 2018. The company produces eight- adiant One. The lotion is sold wholesale in 12- Is a selling commission of $20 per case. a factory overhead costs are as follows: January 2018 direct materials, direct labor and factory...