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 $1.36 Direct materials 5.94 Factory overhead 0.28 Total $7.58 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 $7,197 Direct materials 31,306 Factory overhead 1,527 Total $40,030 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 March 31 Standard Cost at Planned Volume (500,000 Bottles) Manufacturing costs: Direct labor $fill in the blank aacd08ffd06d026_1 Direct materials fill in the blank aacd08ffd06d026_2 Factory overhead fill in the blank aacd08ffd06d026_3 Total $fill in the blank aacd08ffd06d026_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. 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 $fill in the blank 6591fff32070ff5_1 $fill in the blank 6591fff32070ff5_2 $fill in the blank 6591fff32070ff5_3 Direct materials fill in the blank 6591fff32070ff5_4 fill in the blank 6591fff32070ff5_5 fill in the blank 6591fff32070ff5_6 Factory overhead fill in the blank 6591fff32070ff5_7 fill in the blank 6591fff32070ff5_8 fill in the blank 6591fff32070ff5_9 Total manufacturing cost $fill in the blank 6591fff32070ff5_10 $fill in the blank 6591fff32070ff5_11 $fill in the blank 6591fff32070ff5_12 c. The Company's actual costs were $902 than budgeted. direct labor and direct material cost variances more than offset a small factory overhead cost variance.

Cost Category

Standard Cost
per 100 Two-Liter
Bottles

Direct labor

Direct materials

Factory overhead

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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:

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		$7,197
Direct materials		31,306
Factory overhead		1,527
	Total		$40,030

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 March 31
	Standard Cost at Planned Volume (500,000 Bottles)
Manufacturing costs:
Direct labor	$fill in the blank aacd08ffd06d026_1
Direct materials	fill in the blank aacd08ffd06d026_2
Factory overhead	fill in the blank aacd08ffd06d026_3
Total	$fill in the blank aacd08ffd06d026_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. 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	$fill in the blank 6591fff32070ff5_1	$fill in the blank 6591fff32070ff5_2	$fill in the blank 6591fff32070ff5_3
Direct materials	fill in the blank 6591fff32070ff5_4	fill in the blank 6591fff32070ff5_5	fill in the blank 6591fff32070ff5_6
Factory overhead	fill in the blank 6591fff32070ff5_7	fill in the blank 6591fff32070ff5_8	fill in the blank 6591fff32070ff5_9
Total manufacturing cost	$fill in the blank 6591fff32070ff5_10	$fill in the blank 6591fff32070ff5_11	$fill in the blank 6591fff32070ff5_12

c. The Company's actual costs were $902 than budgeted. direct labor and direct material cost variances more than offset a small factory overhead cost variance.

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