Budget Performance Report Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost Performance goals, often relating to how much a product should cost.standards per 100 two-liter bottles are as follows: Cost Category Standard Cost per 100 Two-Liter Bottles Direct labor $1.34 Direct materials 5.74 Factory overhead 0.34 Total $7.42 At the beginning of July, GBC management planned to produce 500,000 bottles. The actual number of bottles produced for July was 540,000 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 $7,091 Direct materials 30,252 Factory overhead 1,854 Total $39,197 Enter all amounts as positive numbers. a. Prepare the July manufacturing A detailed estimate of what a product should cost.standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production. Genie in a Bottle Company Manufacturing Cost Budget For the Month Ended March 31 Standard Cost at Planned Volume (500,000 Bottles) Manufacturing costs: Direct labor $ Direct materials Factory overhead Total $ b. Prepare a budget performance report for manufacturing costs, showing the total The difference between actual cost and the flexible budget at actual volumes.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. Genie in a Bottle Company Manufacturing Costs-Budget Performance Report For the Month Ended March 31 Actual Costs Standard Cost at Actual Volume (540,000 Bottles) Cost Variance- (Favorable) Unfavorable Manufacturing costs: Direct labor $ $ $ Direct materials Factory overhead Total manufacturing cost $ $ $ c. The Company's actual costs were $871 more less than budgeted. Favorable Unfavorable direct labor and direct material cost variances more than offset a small favorable unfavorable factory overhead cost variance.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Budget Performance Report
Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost Performance goals, often relating to how much a product should cost.standards per 100 two-liter bottles are as follows:
Cost Category Standard Cost
per 100 Two-Liter
BottlesDirect labor $1.34 Direct materials 5.74 Factory overhead 0.34 Total $7.42 At the beginning of July, GBC management planned to produce 500,000 bottles. The actual number of bottles produced for July was 540,000 bottles. The actual costs for July of the current year were as follows:
Cost Category Actual Cost for the
Month Ended July 31Direct labor $7,091 Direct materials 30,252 Factory overhead 1,854 Total $39,197
Enter all amounts as positive numbers.
a. Prepare the July manufacturing A detailed estimate of what a product should cost.standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production.
Genie in a Bottle Company Manufacturing Cost Budget For the Month Ended March 31 Standard Cost at
Planned Volume
(500,000 Bottles)Manufacturing costs: Direct labor $ Direct materials Factory overhead Total $ b. Prepare a budget performance report for manufacturing costs, showing the total The difference between actual cost and the flexible budget at actual volumes.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.
Genie in a Bottle Company Manufacturing Costs-Budget Performance Report For the Month Ended March 31
Actual
CostsStandard Cost
at Actual
Volume (540,000
Bottles)Cost
Variance-
(Favorable)
UnfavorableManufacturing costs: Direct labor $ $ $ Direct materials Factory overhead Total manufacturing cost $ $ $ c. The Company's actual costs were $871
- more
- less
- Favorable
- Unfavorable
- favorable
- unfavorable
factory overhead cost variance.
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