Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost Performance goals, often relating to how much a product should cost.standards per 100 two-liter bottles are as follows:

Cost CategoryStandard Cost

per 100 Two-Liter

BottlesDirect labor$1.54Direct materials5.9Factory overhead0.28Total$7.72

At the beginning of July, GBC management planned to produce 490,000 bottles. The actual number of bottles produced for July was 529,200 bottles. The actual costs for July of the current year were as follows:

Cost CategoryActual Cost for the

Month Ended July 31Direct labor$7,987Direct materials30,473Factory overhead1,497Total$39,957

Enter all amounts as positive numbers.

a.Prepare the July manufacturing A detailed estimate of what a product should cost.standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production.

Genie in a Bottle CompanyManufacturing Cost BudgetFor the Month Ended March 31Standard Cost at

Planned Volume

(490,000 Bottles)Manufacturing costs:Direct labor$Direct materialsFactory overheadTotal$

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b.Prepare a budget performance report for manufacturing costs, showing the total The difference between actual cost and the flexible budget at actual volumes.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.

Genie in a Bottle CompanyManufacturing Costs-Budget Performance ReportFor the Month Ended March 31

Actual

CostsStandard Cost

at Actual

Volume (529,200

Bottles)Cost

Variance-

(Favorable)

UnfavorableManufacturing costs:Direct labor$$$Direct materialsFactory overheadTotal manufacturing cost$$$

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c.The Company's actual costs were $897.24

• more
• less
• than budgeted. Favorable
• Unfavorable
• direct labor and direct material cost variances more than offset a small favorable
• unfavorable

factory overhead cost variance.