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 $1.52 Direct materials 5.72 Factory overhead 0.24 Total $7.48 At the beginning of July, GBC management planned to produce 490,000 bottles. The actual number of bottles produced for July was 529,200 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 $7,883 Direct materials 29,544 Factory overhead 1,283 Total $38,710 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 Company Manufacturing Cost Budget For the Month Ended July 31 Standard Cost at Planned Volume(490,000 Bottles) Manufacturing costs: Direct labor $fill in the blank e99fafff1f89f81_1 Direct materials fill in the blank e99fafff1f89f81_2 Factory overhead fill in the blank e99fafff1f89f81_3 Total $fill in the blank e99fafff1f89f81_4 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. If required, round your answers 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(529,200 Bottles) Cost Variance- (Favorable) Unfavorable Manufacturing costs: Direct labor $fill in the blank 5d985105802a012_1 $fill in the blank 5d985105802a012_2 $fill in the blank 5d985105802a012_3 Direct materials fill in the blank 5d985105802a012_4 fill in the blank 5d985105802a012_5 fill in the blank 5d985105802a012_6 Factory overhead fill in the blank 5d985105802a012_7 fill in the blank 5d985105802a012_8 fill in the blank 5d985105802a012_9 Total manufacturing cost $fill in the blank 5d985105802a012_10 $fill in the blank 5d985105802a012_11 $fill in the blank 5d985105802a012_12 c. The Company's actual costs were $874.16 than budgeted. direct labor and direct material cost variances more than offset a small 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 | $1.52 | |||||
| Direct materials | 5.72 | |||||
| Factory |
0.24 | |||||
| Total | $7.48 |
At the beginning of July, GBC management planned to produce 490,000 bottles. The actual number of bottles produced for July was 529,200 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 | $7,883 | |||||||||
| Direct materials | 29,544 | |||||||||
| Factory overhead | 1,283 | |||||||||
| Total | $38,710 |
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 Company | |
| Manufacturing Cost Budget | |
| For the Month Ended July 31 | |
| Standard Cost at Planned Volume(490,000 Bottles) | |
| Manufacturing costs: | |
| Direct labor | $fill in the blank e99fafff1f89f81_1 |
| Direct materials | fill in the blank e99fafff1f89f81_2 |
| Factory overhead | fill in the blank e99fafff1f89f81_3 |
| Total | $fill in the blank e99fafff1f89f81_4 |
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. If required, round your answers 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(529,200 Bottles) | Cost Variance- (Favorable) Unfavorable |
|
| Manufacturing costs: | |||
| Direct labor | $fill in the blank 5d985105802a012_1 | $fill in the blank 5d985105802a012_2 | $fill in the blank 5d985105802a012_3 |
| Direct materials | fill in the blank 5d985105802a012_4 | fill in the blank 5d985105802a012_5 | fill in the blank 5d985105802a012_6 |
| Factory overhead | fill in the blank 5d985105802a012_7 | fill in the blank 5d985105802a012_8 | fill in the blank 5d985105802a012_9 |
| Total manufacturing cost | $fill in the blank 5d985105802a012_10 | $fill in the blank 5d985105802a012_11 | $fill in the blank 5d985105802a012_12 |
c. The Company's actual costs were $874.16 than budgeted. direct labor and direct material cost variances more than offset a small
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
