Budget Performance Report 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 $1.12 Direct materials 6.36 Factory overhead 0.32 Total $7.8 At the beginning of July, GBC management planned to produce 610,000 bottles. The actual number of bottles produced for July was 658,800 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 $7,231 Direct materials 40,894 Factory overhead 2,129 Total $50,254 Enter all amounts as positive numbers. a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production. Genie in a Bottle CompanyManufacturing Cost BudgetFor the Month Ended July 31 Standard Cost at Planned Volume (610,000 Bottles) Manufacturing costs: Direct labor $fill in the blank da4613fd702300d_1 Direct materials fill in the blank da4613fd702300d_2 Factory overhead fill in the blank da4613fd702300d_3 Total $fill in the blank da4613fd702300d_4 Feedback Compare the actual costs with the standard cost at actual volume for direct labor, direct materials, and overhead. Identify the cost variance as favorable (actual less than standard) or unfavorable (actual greater than standard). Review the concepts of favorable and unfavorable variances. 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. Genie in a Bottle CompanyManufacturing Costs-Budget Performance ReportFor the Month Ended July 31 Actual Costs Standard Cost at Actual Volume (658,800 Bottles) Cost Variance- (Favorable) Unfavorable Manufacturing costs: Direct labor $fill in the blank 52b8dffbffc9003_1 $fill in the blank 52b8dffbffc9003_2 $fill in the blank 52b8dffbffc9003_3 Direct materials fill in the blank 52b8dffbffc9003_4 fill in the blank 52b8dffbffc9003_5 fill in the blank 52b8dffbffc9003_6 Factory overhead fill in the blank 52b8dffbffc9003_7 fill in the blank 52b8dffbffc9003_8 fill in the blank 52b8dffbffc9003_9 Total manufacturing cost $fill in the blank 52b8dffbffc9003_10 $fill in the blank 52b8dffbffc9003_11 $fill in the blank 52b8dffbffc9003_12 Feedback Compare the actual costs with the standard cost at actual volume for direct labor, direct materials, and overhead. Identify the cost variance as favorable (actual less than standard) or unfavorable (actual greater than standard). Review the concepts of favorable and unfavorable variances. c. The Company's actual costs were less than budgeted. Favorable direct labor and direct material cost variances more than offset a small 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.
Budget Performance Report
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 | per 100 Two-Liter Bottles |
|||||
| Direct labor | $1.12 | |||||
| Direct materials | 6.36 | |||||
| Factory |
0.32 | |||||
| Total | $7.8 |
At the beginning of July, GBC management planned to produce 610,000 bottles. The actual number of bottles produced for July was 658,800 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 | $7,231 | |||||||||
| Direct materials | 40,894 | |||||||||
| Factory overhead | 2,129 | |||||||||
| Total | $50,254 |
Enter all amounts as positive numbers.
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 (610,000 Bottles) |
|
| Manufacturing costs: | |
| Direct labor | $fill in the blank da4613fd702300d_1 |
| Direct materials | fill in the blank da4613fd702300d_2 |
| Factory overhead | fill in the blank da4613fd702300d_3 |
| Total | $fill in the blank da4613fd702300d_4 |
Compare the actual costs with the standard cost at actual volume for direct labor, direct materials, and overhead. Identify the cost variance as favorable (actual less than standard) or unfavorable (actual greater than standard).
Review the concepts of favorable and unfavorable variances.
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 (658,800 Bottles) |
Cost Variance- (Favorable) Unfavorable |
|
| Manufacturing costs: | |||
| Direct labor | $fill in the blank 52b8dffbffc9003_1 | $fill in the blank 52b8dffbffc9003_2 | $fill in the blank 52b8dffbffc9003_3 |
| Direct materials | fill in the blank 52b8dffbffc9003_4 | fill in the blank 52b8dffbffc9003_5 | fill in the blank 52b8dffbffc9003_6 |
| Factory overhead | fill in the blank 52b8dffbffc9003_7 | fill in the blank 52b8dffbffc9003_8 | fill in the blank 52b8dffbffc9003_9 |
| Total manufacturing cost | $fill in the blank 52b8dffbffc9003_10 | $fill in the blank 52b8dffbffc9003_11 | $fill in the blank 52b8dffbffc9003_12 |
Compare the actual costs with the standard cost at actual volume for direct labor, direct materials, and overhead. Identify the cost variance as favorable (actual less than standard) or unfavorable (actual greater than standard).
Review the concepts of favorable and unfavorable variances.
c. The Company's actual costs were less than budgeted. Favorable direct labor and direct material cost variances more than offset a small Unfavorable
Step by step
Solved in 4 steps
