Lanier Bottle Company 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 100Two-Liter Bottles Direct labor $1.25 Direct materials 4.80 Factory overhead 1.50 Total $7.55 At the beginning of January, Lanier Bottle’s management planned to produce 3,500,000 bottles. The actual number of bottles produced for January was 3,600,000 bottles. The actual costs for January of the current year were as follows: Cost Category Actual Cost for the MonthEnded January 31 Direct labor $46,750 Direct materials 175,000 Factory overhead 52,900 Total $274,650 Question Content Area a.  Prepare the January manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Lanier Bottle, assuming planned production. Lanier Bottle CompanyManufacturing Cost BudgetFor the Month Ended January 31 Line Item Description Standard Costat PlannedVolume(3,500,000Bottles) Manufacturing costs:   Direct labor $Direct labor Direct materials Direct materials Factory overhead Factory overhead Total $Total   Feedback Area   Feedback   Question Content Area b.  Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for January. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Lanier Bottle CompanyManufacturing Costs-Budget Performance ReportFor the Month Ended January 31 Line Item Description ActualCosts Standard Costat ActualVolume(3,600,000Bottles) CostVariance-(Favorable)Unfavorable Manufacturing costs:       Direct labor $Direct labor $Direct labor $Direct labor Direct materials Direct materials Direct materials Direct materials Factory overhead Factory overhead Factory overhead Factory overhead Total manufacturing cost $Total manufacturing cost $Total manufacturing cost $Total manufacturing cost