Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 $1.18 Direct labor Direct materials Factory overhead 5.46 0.24 Total $6.88 At the beginning of July, GBC management planned to produce 470,000 bottles. The actual number of bottles produced for July was 507,600 bottles. The actual costs for July of current year were as follows: Actual Cost for the Cost Category Month Ended July 31 Direct labor $5,870 Direct materials 27,050 Factory overhead 1,230 Total $34,150 Enter all amounts as positive numbers. Enter all amounts as positive numbers. 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 March 31 Standard Cost at Planned Volume (470,000 Bottles) Manufacturing costs: Direct labor Direct materials Factory overhead Total 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 March 31 Standard Cost Cost at Actual Variance Volume (507,600 (Favorable) Bottles) Unfavorable Actual Costs Manufacturing costs: Direct labor Direct materials Factory overhead Total manufacturing cost direct labor and direct material cost C. The Company's actual costs were $772.88 variances more than offset a small than budgeted factory overhead cost variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting History And The Rise Of Civilization, Volume II

Authors: Gary Giroux

1st Edition

163157793X, 9781631577932

More Books

Students also viewed these Accounting questions

Question

Understand the use of different performance-rating techniques

Answered: 1 week ago