A company manufactures plastic bottles for the beverage industry. The cost standards per 100 bottles are listed below.

Cost Category Standard Cost

Per 100 Bottles

Direct labor $2.00

Direct materials 9.10

Factory overhead 0.55

Total $11.65

At the beginning of the month the company planned to produced 400,000 bottles. The actual number of produced for the month was 406,000. Actual costs for July of the current year were as followed.

Cost Category Standard Cost

Per 100 Bottles

Direct labor $2.00

Direct materials 9.10

Factory overhead 0.55

Total $11.65

• How would I prepare standard cost budget (direct labor, direct materials, and factory overhead) assuming planned production.
• How would I make budget performance repot for manufacturing costs, showing total cost variances for direct materials, direct labor, and overhead