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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\mathrm{.}4$

Direct materials $5\mathrm{.}62$

Factory overhead $0\mathrm{.}42$

Total $$7\mathrm{.}44$

At the beginning of July, GBC management planned to produce $650,000$ bottles. The actual number of bottles produced for July was $702,000$ 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 $$9,631$

Direct materials $38,506$

Factory overhead $2,978$

Total $$51,115$

Enter all amounts as positive numbers.

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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$(650,000$ Bottles$)$

Manufacturing costs:

Direct labor $fill in the blank $39$c$542$f$45066017\_1$

Direct materials fill in the blank $39$c$542$f$45066017\_2$

Factory overhead fill in the blank $39$c$542$f$45066017\_3$

Total $fill in the blank $39$c$542$f$45066017\_4$

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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. If required, round your answers to nearest cent.

Genie in a Bottle Company

Manufacturing Costs$-$Budget Performance Report

For the Month Ended July $31$

Actual

Costs Standard Cost at Actual Volume$(702,000$ Bottles$)$ Cost Variance$-$

$($Favorable$)$

Unfavorable

Manufacturing costs:

Direct labor $fill in the blank b$7$f$426$fe$6$fad$020\_1$

$fill in the blank b$7$f$426$fe$6$fad$020\_2$

$fill in the blank b$7$f$426$fe$6$fad$020\_3$

Direct materials fill in the blank b$7$f$426$fe$6$fad$020\_4$

fill in the blank b$7$f$426$fe$6$fad$020\_5$

fill in the blank b$7$f$426$fe$6$fad$020\_6$

Factory overhead fill in the blank b$7$f$426$fe$6$fad$020\_7$

fill in the blank b$7$f$426$fe$6$fad$020\_8$

fill in the blank b$7$f$426$fe$6$fad$020\_9$

Total manufacturing cost $fill in the blank b$7$f$426$fe$6$fad$020\_10$

$fill in the blank b$7$f$426$fe$6$fad$020\_11$

$fill in the blank b$7$f$426$fe$6$fad$020\_12$

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c$.$ The Company's actual costs were $$1113\mathrm{.}8$

than budgeted.

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

factory overhead cost variance.