Budget Performance Report Genle 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: Standard Cost Cost Category per 100 Two-Liter Direct labor Direct materials Factory overhead Bottles $2.00 9.10 0.55 $11.65 Total At the beginning of July, GBC management planned to produce 400,000 bottles. The actual number of bottles produced for July was 406,000 bottles. The actual costs for July of the current year were as follows: Actual Cost for the Month Ended July 31 Cost Category Direct labor Direct materials Factory overhead $7,540 35,750 2,680 $45,970 Total Enter all amounts as positive numbers. a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for GBC, assuming a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for GBC, assuming planned production. Genie In A Bottle Company Manufacturing Cost Budget For the Month Ended July 31 Standard Cost at Planned Volume (400,000 Bottles) Manufacturing costs: ) Direct labor Direct materials Factory overhead Total Feedback Check My Work Compare the actual costs with the standard cost at actual volume for direct labor, direct materials, and overhead. Identify the cost variance as favorable (actual less than standard) or unfavorable (actual greater than standard) Review the concepts of favorable and unfavorable variances Learning Objective 2. b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct m and factory overhead for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a 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 Genie In A Bottle Company Manufacturing Costs-Budget Performance Report Actual Standard Cost at Cost Variance- Cots(406,000 Bottles) Unfavorable Actual Volume (Favorable Manufacturing costs Direct labor Direct materials Factory overhead Total manufacturing cost Feedback Y Check My Work Compare the actual costs with the standard cost at actual volume for direct labor, direct materials, and overhead. Identify the cost variance a favorable (actual less than standard) or unfavorable (actual greater than standard). Review the concepts of favorable and unfavorable variances Learning Objective 2 c. The Company's actual costs were $1,329 less than budgeted. Favorable direct labor and direct material cost variances more than offset a small unfavorable factory overhead cost variance
