Salisbury Bottle Company 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			$1.20
Direct materials			6.50
Factory overhead			1.80
	Total		$9.50

At the beginning of March, Salisburys management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows:

Cost Category		Actual Cost for the Month Ended March 31
Direct labor						$6,550
Direct materials						33,800
Factory overhead						9,100
	Total					$49,450

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

Salisbury Bottle Company
Manufacturing Cost Budget
For the Month Ended March 31
	Standard Cost at Planned Volume (500,000 Bottles)
Manufacturing costs:
Direct labor	$fill in the blank 9177de064041072_1
Direct materials	fill in the blank 9177de064041072_2
Factory overhead	fill in the blank 9177de064041072_3
Total	$fill in the blank 9177de064041072_4

b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Salisbury Bottle Company
Manufacturing Costs-Budget Performance Report
For the Month Ended March 31
	Actual Costs	Standard Cost at Actual Volume (525,000 Bottles)	Cost Variance- (Favorable) Unfavorable
Manufacturing costs:
Direct labor	$fill in the blank 12e7e200bff0007_1	$fill in the blank 12e7e200bff0007_2	$fill in the blank 12e7e200bff0007_3
Direct materials	fill in the blank 12e7e200bff0007_4	fill in the blank 12e7e200bff0007_5	fill in the blank 12e7e200bff0007_6
Factory overhead	fill in the blank 12e7e200bff0007_7	fill in the blank 12e7e200bff0007_8	fill in the blank 12e7e200bff0007_9
Total manufacturing cost	$fill in the blank 12e7e200bff0007_10	$fill in the blank 12e7e200bff0007_11	$fill in the blank 12e7e200bff0007_12

c. The Company's actual costs were $425 than budgeted. direct materials and factory overhead cost variances more than offset a small direct labor cost variance.