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 CategoryStandard Costper 100 Two-LiterBottlesDirect labor $1.16 Direct materials 5.56 Factory overhead 0.4 Total $7.12 At the beginning of July, GBC management planned to produce 550,000 bottles. The actual number of bottles produced for July was 594,000 bottles. The actual costs for July of the current year were as follows:Cost CategoryActual Cost for theMonth Ended July 31Direct labor $6,753 Direct materials 32,234 Factory overhead 2,400 Total $41,387 Enter all amounts as positive numbers. a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production.Genie in a Bottle CompanyManufacturing Cost BudgetFor the Month Ended March 31Standard Cost atPlanned Volume(550,000 Bottles)Manufacturing costs:Direct laborDirect materialsFactory overheadTotal$ 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 anunfavorable variance as a positive number. Round your answers to two decimal places.Genie in a Bottle CompanyManufacturing Costs-Budget Performance ReportFor the Month Ended March 31Standard CostCostat ActualVariance-Volume (594,000 (Favorable)ActualBottles)UnfavorableCostsManufacturing costs:Direct laborDirect materialsFactory overheadTotal manufacturing cost $c. The Company's actual costs were $905.8v than budgeted.v direct labor and direct material cost variances more than offset a smallv factory overhead cost variance.

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Name: Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles
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Description: 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 CategoryStandard Costper 100 Two-LiterBottlesDirect labor $1.16 Direct materials 5.56

Standard Costing- It refers to the system under which cos is controlled whereby standard costs are…

Cost Category

Standard Cost
per 100 Two-Liter
Bottles

Direct labor

Direct materials

Factory overhead

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.11E: Factory overhead cost budget Nutty Candy Company budgeted the following costs for anticipated...

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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 550,000 bottles. The actual number of bottles produced for July was 594,000 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		$6,753
Direct materials		32,234
Factory overhead		2,400
	Total		$41,387

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
(550,000 Bottles)
Manufacturing costs:
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. Round your answers to two decimal places.
Genie in a Bottle Company
Manufacturing Costs-Budget Performance Report
For the Month Ended March 31
Standard Cost
Cost
at Actual
Variance-
Volume (594,000 (Favorable)
Actual
Bottles)
Unfavorable
Costs
Manufacturing costs:
Direct labor
Direct materials
Factory overhead
Total manufacturing cost $
c. The Company's actual costs were $905.8
v than budgeted.
v direct labor and direct material cost variances more than offset a small
v factory overhead cost variance.

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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