Question
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
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 | $1.46 | |||||
Direct materials | 5.2 | |||||
Factory overhead | 0.3 | |||||
Total | $6.96 |
At the beginning of July, GBC management planned to produce 530,000 bottles. The actual number of bottles produced for July was 572,400 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 | $8,190 | |||||||||
Direct materials | 29,050 | |||||||||
Factory overhead | 1,734 | |||||||||
Total | $38,974 |
Enter all amounts as positive numbers.
Question Content Area
a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production.
Standard Cost at Planned Volume (530,000 Bottles) | |
Manufacturing costs: | |
Direct labor | $fill in the blank |
Direct materials | fill in the blank |
Factory overhead | fill in the blank |
Total | $fill in the blank |
Question Content Area
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.
Actual Costs | Standard Cost at Actual Volume (572,400 Bottles) | Cost Variance- (Favorable) Unfavorable | |
Manufacturing costs: | |||
Direct labor | $fill in the blank | $fill in the blank | $fill in the blank |
Direct materials | fill in the blank | fill in the blank | fill in the blank |
Factory overhead | fill in the blank | fill in the blank | fill in the blank |
Total manufacturing cost | $fill in the blank | $fill in the blank | $fill in the blank |
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