Genuine Spice Inc. began operations on January 1 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 CaseCostper UnitDirect MaterialsCost per CaseCream baseVariable100 ozs.$0.02 $2.00Natural oilsVariable30 ozs.0.30 9.00Bottle (8-oz.)Variable12 bottles0.50 6.00$17.00DIRECT CaseLabor Rateper HourDirect LaborCost per CaseMixingVariable 20min.$18.00 $6.00FillingVariable 5 14.40 1.2025min. $7.20FACTORY OVERHEADCost BehaviorTotal CostUtilitiesMixed $600Facility leaseFixed 14,000Equipment depreciationFixed 4,300SuppliesFixed 660$19,560
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