Question

Budget Performance Report Genle in a Bottle Company (GBC) manufactures plastic two-liter standards per 100 two-liter bottles Cost Category Standard Cost per 100 Two Liter Bottles $1.44 Direct labor Direct materials Factory overhead 4.94 0.38 Total 56.76 actual number of bottles produced for July was 712,800 bottles. The actual costs for July of At the beginning of July, GBC management planned to produce 660,000 the current year were as follows: Actual Cost for the Cost Category Month Ended July 31 Direct labor $10,059 Direct materials 34,367 Factory overhead 2,736 Total $47,162 Enter all amounts as positive numbers.

Answer 1

Correct Answer:

Requirement a:

Genie in a bottle company
Manufacturing cost budget
For the month ended March 31
Cost category	Actual cost at planned volume (660000 bottles)
Direct Labor	$          9,504
Direct Materials	$        32,604
Factory overheads	$          2,508
Total	$        44,616

Requirement b:

Genie in a bottle company
Manufacturing cost budget
For the month ended March 31
	Actual cost	Standard cost at actual volume (712000 bottles)	Cost variance (Favorable/unfavorable)
Manufacturing cost:
Direct Labor	$ 10,059.00	$      10,264.32	$     (205.32)	F
Direct Materials	$ 34,367.00	$      35,212.32	$     (845.32)	F
Factory overheads	$    2,736.00	$         2,708.64	$         27.36	U
Total	$ 47,162.00	$      48,185.28	$ (1,023.28)	F

Requirement c:

The company’s actual cost were $ 1023.28 Less than budgeted standard direct labor and direct material cost variance more than offset a small unfavourable factory overhead cost variance

End of answer.

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