Budget Performance Report

Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows:

Cost Category		Standard Cost per 100 Two-Liter Bottles
Direct labor			$1.52
Direct materials			5.28
Factory overhead			0.24
	Total		$7.04

At the beginning of July, GBC management planned to produce 540,000 bottles. The actual number of bottles produced for July was 583,200 bottles. The actual costs for July of the current year were as follows:

Cost Category		Actual Cost for the Month Ended July 31
Direct labor						$8,687
Direct materials						30,054
Factory overhead						1,414
	Total					$40,155

Enter all amounts as positive numbers.

Question Content Area

a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production.

Genie in a Bottle Company Manufacturing Cost Budget For the Month Ended July 31

	Standard Cost at Planned Volume (540,000 Bottles)
Manufacturing costs:
Direct labor	$fill in the blank e9627ffd7fb1fd0_1
Direct materials	fill in the blank e9627ffd7fb1fd0_2
Factory overhead	fill in the blank e9627ffd7fb1fd0_3
Total	$fill in the blank e9627ffd7fb1fd0_4

Question Content Area

b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your answers to two decimal places.

Genie in a Bottle Company Manufacturing Costs-Budget Performance Report For the Month Ended July 31

	Actual Costs	Standard Cost at Actual Volume (583,200 Bottles)	Cost Variance- (Favorable) Unfavorable
Manufacturing costs:
Direct labor	$fill in the blank 60fb5e01bf90ffa_1	$fill in the blank 60fb5e01bf90ffa_2	$fill in the blank 60fb5e01bf90ffa_3
Direct materials	fill in the blank 60fb5e01bf90ffa_4	fill in the blank 60fb5e01bf90ffa_5	fill in the blank 60fb5e01bf90ffa_6
Factory overhead	fill in the blank 60fb5e01bf90ffa_7	fill in the blank 60fb5e01bf90ffa_8	fill in the blank 60fb5e01bf90ffa_9
Total manufacturing cost	$fill in the blank 60fb5e01bf90ffa_10	$fill in the blank 60fb5e01bf90ffa_11	$fill in the blank 60fb5e01bf90ffa_12

Question Content Area

c. The Company's actual costs were

moreless

than budgeted.

FavorableUnfavorable

direct labor and direct material cost variances more than offset a small

favorableunfavorable

factory overhead cost variance.