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			$1.46
Direct materials			5.52
Factory overhead			0.34
	Total		$7.32

At the beginning of July, GBC management planned to produce 530,000 bottles. The actual number of bottles produced for July was 572,400 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						$8,190
Direct materials						30,838
Factory overhead						1,966
	Total					$40,994

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 (530,000 Bottles)
Manufacturing costs:
Direct labor	$fill in the blank 1a593f07cfb7068_1
Direct materials	fill in the blank 1a593f07cfb7068_2
Factory overhead	fill in the blank 1a593f07cfb7068_3
Total	$fill in the blank 1a593f07cfb7068_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 March 31
	Actual Costs	Standard Cost at Actual Volume (572,400 Bottles)	Cost Variance- (Favorable) Unfavorable
Manufacturing costs:
Direct labor	$fill in the blank f82edbfeeff4fd3_1	$fill in the blank f82edbfeeff4fd3_2	$fill in the blank f82edbfeeff4fd3_3
Direct materials	fill in the blank f82edbfeeff4fd3_4	fill in the blank f82edbfeeff4fd3_5	fill in the blank f82edbfeeff4fd3_6
Factory overhead	fill in the blank f82edbfeeff4fd3_7	fill in the blank f82edbfeeff4fd3_8	fill in the blank f82edbfeeff4fd3_9
Total manufacturing cost	$fill in the blank f82edbfeeff4fd3_10	$fill in the blank f82edbfeeff4fd3_11	$fill in the blank f82edbfeeff4fd3_12

c. The Company's actual costs were $905.68 than budgeted. direct labor and direct material cost variances more than offset a small factory overhead cost variance.