Time in a Bottle Company (TBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards pertwo-liter bottles are as follows:

Cost Category Standard cost per 100 two-liter bottles

Direct labor 1.80

Direct Materials 8.25

Factory Overhead .50

Total $10.55

At the beginning of May, TBC management planned to producebottles. The actual number of bottles produced for May wasbottles. The actual costs for May of the current year were as follows:

Cost Category Actual Cost for the Month ended May 31, 2014

Direct labor $9890

Direct materials 48,450

Factory Overhead 3460

Total $61,800

1. Prepare the May manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for TBC, assuming planned production.
2. Prepareabudgetperformancereportformanufacturingcosts,showingthetotalcostvariancesfordirectmaterials,directlabor,andfactoryoverheadforMay.

Please answer in the form of the attached document below.

Exercise 23-3 Name: Section: Score: 14% Key Code: [Key code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. a. TIME IN A BOTTLE COMPANY Manufacturing Cost Budget For the Month Ended May 31, 2014 Batches of 100 Cost per Batch of 100 Standard Cost at Planned Volume (600,000 bottles) Manufacturing costs: Direct labor Direct materials Factory overhead Total b. TIME IN A BOTTLE COMPANY Manufacturing CostsBudget Performance Report For the Month Ended May 31, 2014 Cost Variance Actual Costs Standard Cost at Actual Volume (610,000 bottles) Batches of 100 Cost per Batch of 100 (Favorable) Unfavorable