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 CategoryStandard Cost per 100 Two-Liter BottlesDirect labor $1.28 Direct materials 6.14 Factory overhead 0.36 Total $7.78

At the beginning of July, GBC management planned to produce 620,000 bottles. The actual number of bottles produced for July was 669,600 bottles. The actual costs for July of the current year were as follows:

Cost CategoryActual Cost for the Month Ended July 31Direct labor $8,399 Direct materials 40,127 Factory overhead 2,435 Total $50,961

Enter all amounts as positive numbers.

Question Content Area

a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production.

Standard Cost at Planned Volume (620,000 Bottles)Manufacturing costs: Direct labor$fill in the blank 46944dfc803df9e_1Direct materialsfill in the blank 46944dfc803df9e_2Factory overheadfill in the blank 46944dfc803df9e_3Total$fill in the blank 46944dfc803df9e_4

Question Content Area

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.

Actual CostsStandard Cost at Actual Volume (669,600 Bottles)Cost Variance- (Favorable) UnfavorableManufacturing costs: Direct labor$fill in the blank 3d07d007bff1f8a_1$fill in the blank 3d07d007bff1f8a_2$fill in the blank 3d07d007bff1f8a_3Direct materialsfill in the blank 3d07d007bff1f8a_4fill in the blank 3d07d007bff1f8a_5fill in the blank 3d07d007bff1f8a_6Factory overheadfill in the blank 3d07d007bff1f8a_7fill in the blank 3d07d007bff1f8a_8fill in the blank 3d07d007bff1f8a_9Total manufacturing cost$fill in the blank 3d07d007bff1f8a_10$fill in the blank 3d07d007bff1f8a_11$fill in the blank 3d07d007bff1f8a_12

Question Content Area

c. The Company's actual costs were

moreless

than budgeted.

FavorableUnfavorable

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

favorableunfavorable

factory overhead cost variance.