Budget Performance Report

Genie in a Bottle Company (GBC) manufactures plastic two-literbottles for the beverage industry. The cost standards per 100two-liter bottles are as follows:

Cost Category		Standard Cost per 100 Two-Liter Bottles
Direct labor			$1.22
Direct materials			5.14
Factory overhead			0.28
	Total		$6.64

At the beginning of July, GBC management planned to produce620,000 bottles. The actual number of bottles produced for July was669,600 bottles. The actual costs for July of the current year wereas follows:

Cost Category		Actual Cost for the Month Ended July 31
Direct labor						$8,006
Direct materials						33,591
Factory overhead						1,894
	Total					$43,491

Enter all amounts as positive numbers.

a. Prepare the July manufacturing standard costbudget (direct labor, direct materials, and factory overhead) forWBC, assuming planned production.

Genie in a Bottle Company
Manufacturing Cost Budget
For the Month Ended July 31
	Standard Cost at Planned Volume(620,000 Bottles)
Manufacturing costs:
Direct labor	$
Direct materials
Factory overhead
Total	$

Feedback

Compare the actual costs with the standard cost at actual volumefor direct labor, direct materials, and overhead. Identify the costvariance as favorable (actual less than standard) or unfavorable(actual greater than standard).

Review the concepts of favorable and unfavorable variances.

Learning Objective 2.

b. Prepare a budget performance report formanufacturing costs, showing the total cost variances for directmaterials, direct labor, and factory overhead for July. Enter afavorable variance as a negative number using a minus sign and anunfavorable variance as a positive number. If required, round youranswers to nearest cent.

Genie in a Bottle Company
Manufacturing Costs-Budget Performance Report
For the Month Ended July 31
	Actual Costs	Standard Cost at Actual Volume(669,600 Bottles)	Cost Variance- (Favorable) Unfavorable
Manufacturing costs:
Direct labor	$	$	$
Direct materials
Factory overhead
Total manufacturing cost	$	$	$