Warwick Bottle Company (WBC) 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 $1.22 Direct materials 6.24 Factory overhead 0.30 Total $7.76 At the beginning of March, WBC management planned to produce 630,000 bottles. The actual number of bottles produced for March was 680,000 bottles. The actual costs for March of the current year were as follows: Cost Category Actual Cost for the Month Ended March 31, 2014 Direct labor $8,130 Direct materials 41,410 Factory overhead 2,060 Total $51,600 Enter all amounts as positive numbers. Hide a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production. Warwick Bottle Company Manufacturing Cost Budget For the Month Ended March 31, 2014 Standard Cost at Planned Volume (630,000 Bottles) Manufacturing costs: Direct labor $ Direct materials Factory overhead Total $ Hide 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. Warwick Bottle Company Manufacturing Costs-Budget Performance Report For the Month Ended March 31, 2014 Actual Costs Standard Cost at Actual Volume (680,000 Bottles) Cost Variance-(Favorable) Unfavorable Manufacturing costs: Direct labor $ $ $ Direct materials Factory overhead Total manufacturing cost $ $ $ c. The Company's actual costs were $1,168 than budgeted. direct labor and direct material cost variances more than offset a small factory overhead cost variance.