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 Costper 100 Two-LiterBottles Direct labor $2.00 Direct materials 9.10 Factory overhead 0.55 Total $11.65 At the beginning of July, GBC management planned to produce 400,000 bottles. The actual number of bottles produced for July was 406,000 bottles. The actual costs for July of the current year were as follows: Cost Category Actual Cost for theMonth Ended July 31 Direct labor $7,540 Direct materials 35,750 Factory overhead 2,680 Total $45,970 Enter all amounts as positive numbers. a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for GBC, assuming planned production. Genie In A Bottle Company Manufacturing Cost Budget For the Month Ended July 31 Standard Cost at Planned Volume(400,000 Bottles) Manufacturing costs: Direct labor $ Direct materials Factory overhead Total $ Feedback 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. Genie In A Bottle Company Manufacturing Costs-Budget Performance Report For the Month Ended July 31 Actual Costs Standard Cost at Actual Volume(406,000 Bottles) Cost Variance-(Favorable) Unfavorable Manufacturing costs: Direct labor $ $ $ Direct materials Factory overhead Total manufacturing cost $ $ $
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 | $2.00 | |||||
| Direct materials | 9.10 | |||||
| Factory |
0.55 | |||||
| Total | $11.65 |
At the beginning of July, GBC management planned to produce 400,000 bottles. The actual number of bottles produced for July was 406,000 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 | $7,540 | |||||||||
| Direct materials | 35,750 | |||||||||
| Factory overhead | 2,680 | |||||||||
| Total | $45,970 |
Enter all amounts as positive numbers.
a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for GBC, assuming planned production.
| Genie In A Bottle Company | |
| Manufacturing Cost Budget | |
| For the Month Ended July 31 | |
| Standard Cost at Planned Volume (400,000 Bottles) |
|
| Direct labor | $ |
| Direct materials | |
| Factory overhead | |
| Total | $ |
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.
| Genie In A Bottle Company | |||
| Manufacturing Costs-Budget Performance Report | |||
| For the Month Ended July 31 | |||
| Actual Costs | Standard Cost at Actual Volume (406,000 Bottles) |
Cost Variance- (Favorable) Unfavorable |
|
| Manufacturing costs: | |||
| Direct labor | $ | $ | $ |
| Direct materials | |||
| Factory overhead | |||
| Total manufacturing cost | $ | $ | $ |
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