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		$1.32
Direct materials		4.92
Factory overhead		0.34
	Total		$6.58

At the beginning of July, GBC management planned to produce 430,000 bottles. The actual number of bottles produced for July was 464,400 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					$6,007
Direct materials					22,300
Factory overhead					1,595
	Total					$29,902

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 (430,000 Bottles)
Manufacturing costs:
Direct labor	$fill in the blank 6fe734033ff0062_1
Direct materials	fill in the blank 6fe734033ff0062_2
Factory overhead	fill in the blank 6fe734033ff0062_3
Total	$fill in the blank 6fe734033ff0062_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 Costs	Standard Cost at Actual Volume (464,400 Bottles)	Cost Variance- (Favorable) Unfavorable
Manufacturing costs:
Direct labor	$fill in the blank 14f9bcf6dfdbfe6_1	$fill in the blank 14f9bcf6dfdbfe6_2	$fill in the blank 14f9bcf6dfdbfe6_3
Direct materials	fill in the blank 14f9bcf6dfdbfe6_4	fill in the blank 14f9bcf6dfdbfe6_5	fill in the blank 14f9bcf6dfdbfe6_6
Factory overhead	fill in the blank 14f9bcf6dfdbfe6_7	fill in the blank 14f9bcf6dfdbfe6_8	fill in the blank 14f9bcf6dfdbfe6_9
Total manufacturing cost	$fill in the blank 14f9bcf6dfdbfe6_10	$fill in the blank 14f9bcf6dfdbfe6_11	$fill in the blank 14f9bcf6dfdbfe6_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.