Budget Performance Report

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

Cost Category Standard Cost

per 100 Two-Liter

Bottles

Direct labor $1.38

Direct materials 5.88

Factory overhead 0.3

Total $7.56

At the beginning of July, GBC management planned to produce 560,000 bottles. The actual number of bottles produced for July was 604,800 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 $8,179

Direct materials 34,709

Factory overhead 1,833

Total $44,721

Enter all amounts as positive numbers.

a.Prepare the July manufacturingstandard costbudget (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(560,000 Bottles)

Manufacturing costs:

Direct labor$________________

Direct materials$____________

Factory overhead$___________

Total$_____________________

b Here is a budget performance report for manufacturing costs, showing the totalcost variancesfor 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. If required, round your answers to nearest cent.

Genie in a Bottle Company

Manufacturing Costs-Budget Performance Report

For the Month Ended July 31

Actual Costs Standard Cost at Actual Volume(604,800 Bottles) Cost Variance-(Favorable)Unfavorable

Manufacturing costs:

Direct labor$_________________$___________________$__________________

Direct materials$______________$___________________$__________________

Factory overhead$_____________$__________________$__________________

Total manufacturing cost$___________$__________$________________

c.The Company's actual costs were $1001.88than budgeted. Direct labor and direct material cost variances more than offset a smallfactory overhead cost variance.