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Part C-August Variance Analysis During September of the current year, the controller 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: Actual Direct Materials Actual Direct Materials Price per Unit Quantity per Case Cream base $0.016 per oz. 102 ozs. Natural oils $0.32 per oz. 31 Ozs. Bottle (8-oz.) $0.42 per bottle 12.5 bottles Actual Direct Labor Actual Direct Labor Time per Case Rate $18.20 19.50 min Mixing Filling 14.00 5.60 min. $305.00 Actual variable overhead Normal volume 1,600 cases The prices of the materials were different than 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 actual labor rate to be less than standard. 11. Determine the direct labor rate and time variances for the two departments. Do not round hours. Enter the costs in dollars and cents. Direct Labor Rate Variance: Mixing Department Filling Department Actual rate Standard rate Difference Actual time (hours) Direct labor rate variance Indicate if favorable or unfavorable Direct Labor Time Variance: Direct Labor Time Variance: Mixing Department Filling Department Actual time (hours) Standard time (hours) Difference Standard rate X $ Xs Direct labor time variance Indicate if favorable or unfavorable Genuine Spice Inc. began operations on January 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 Cost Behavior Units per Case Direct Materials Cost per Case per Unit Cream base Variable 100 oz. $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 Cost Labor Rate Department Time per Case Direct Labor Cost per Case Behavior per Hour Variable 20 min. $18.00 $6.00 Mixing 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 Fixed 4,300 Equipment depreciation Supplies Fixed 660 $19,560 Part C-August Variance Analysis During September of the current year, the controller 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: Actual Direct Materials Actual Direct Materials Price per Unit Quantity per Case Cream base $0.016 per oz. 102 Ozs. Natural oils $0.32 per oz. 31 oz. Bottle (8-oz.) $0.42 per bottle 12.5 bottles Actual Direct Labor Actual Direct Labor Time per Case Rate Mixing $18.20 19.50 min Filling 14.00 5.60 min. Actual variable overhead $305.00 Normal volume 1,600 cases The prices of the materials were different than 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 actual labor rate to be less than standard