Budget Performance Report McAlisters Bottle 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 $1.32 6.30 0.28 $7.90 Cost Category Direct labor Direct materials Factory overhead Total At the beginning of May, McAlisters Bottle's management planned to produce 640,000 bottles. The actual number of bottles produced for May was 690,000 bottles. The actual costs for May of the current year were as follows Actual Cost for the Cost Category Direct labor Direct materials Factory overhead Month Ended May 31 $9,290 42,430 1,950 $53,670 Total 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 640,000 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 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 Cost at Actual Volume Actual Costs (690,000 bottles) Unfavorable Cost Variance (Favorable) Manufacturing costs Direct labor Direct materials Factory overhead Total manufacturing cost c. Which of the following statements is true regarding McAlisters's budget performance report