Budget Performance Report McAlisters Battle Company manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows: Standard Cost per 100 Two-Liter Bottles Cost Category Direct labor $2.75 Direct materials 1.20 Factory overhead 0.35 Total $4.30 At the beginning of May, McAlisters Bottle's management planned to produce 800,000 bottles. The actual number of bottles produced for May was 750,000 bottles. The actual costs for May of the current year were as follows: Actual Cost for the Month Ended May 31 Cost Category Direct labor $21,100 Direct materials 9,200 Factory overhead 2,700 Total $33,000 a. Prepare the May manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for McAlisters Bottle Company, assuming planned production. Enter all amounts as positive numbers. McAlisters Bottle Company Manufacturing Cost Budget For the Month Ended May 31 Standard Cost at Planned Volume Manufacturing costs: (800,000 Bottles) 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 May. Enter favorable variances as negative numbers. Enter unfavorable variances and all other amounts as positive numbers, McAlisters Bottle Company Manufacturing Costs - Budget Performance Report For the Month Ended May 31 Standard Cast Cost Variance at Actual Volume Unfavorable Manufacturing costs: Actual costs (750,000 bottles) (Favorable) Direct labor Direct materials load Factory overhead Total manufacturing costs c. Which of the following statements is true regarding McAlisters Bottle's budget performance report