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			$1.34
Direct materials			5.44
Factory overhead			0.34
	Total		$7.12

At the beginning of July, GBC management planned to produce 640,000 bottles. The actual number of bottles produced for July was 691,200 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						$9,077
Direct materials						36,699
Factory overhead						2,374
	Total					$48,150

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 July 31

	Standard Cost at Planned Volume (640,000 Bottles)
Manufacturing costs:
Direct labor	$fill in the blank 418f9b055feffa1_1
Direct materials	fill in the blank 418f9b055feffa1_2
Factory overhead	fill in the blank 418f9b055feffa1_3
Total	$fill in the blank 418f9b055feffa1_4

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 (691,200 Bottles)	Cost Variance- (Favorable) Unfavorable
Manufacturing costs:
Direct labor	$fill in the blank c53f9502a025fb0_1	$fill in the blank c53f9502a025fb0_2	$fill in the blank c53f9502a025fb0_3
Direct materials	fill in the blank c53f9502a025fb0_4	fill in the blank c53f9502a025fb0_5	fill in the blank c53f9502a025fb0_6
Factory overhead	fill in the blank c53f9502a025fb0_7	fill in the blank c53f9502a025fb0_8	fill in the blank c53f9502a025fb0_9
Total manufacturing cost	$fill in the blank c53f9502a025fb0_10	$fill in the blank c53f9502a025fb0_11	$fill in the blank c53f9502a025fb0_12

c. The Company's actual costs were

moreless

than budgeted.

FavorableUnfavorable

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

favorable unfavorable

factory overhead cost variance.