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			$1.42
Direct materials			5.48
Factory overhead			0.3
	Total		$7.2

At the beginning of July, GBC management planned to produce 670,000 bottles. The actual number of bottles produced for July was 723,600 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						$10,070
Direct materials						38,702
Factory overhead						2,193
	Total					$50,965

Enter all amounts as positive numbers.

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 (670,000 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 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 Company Manufacturing Costs-Budget Performance Report For the Month Ended July 31

	Actual Costs	Standard Cost at Actual Volume (723,600 Bottles)	Cost Variance- (Favorable) Unfavorable
Manufacturing costs:
Direct labor	$	$	$
Direct materials
Factory overhead
Total manufacturing cost	$	$	$

c. The Company's actual costs were (more/less) than budgeted. (Favorable/Unfavorable) direct labor and direct material cost variances more than offset a small

(favorable/unfavorable) factory overhead cost variance.