Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the b

Question

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 380,000 bottles. The actual number of bottles produced for July was 385,000 bottles. The actual costs for July of the current year were as follows:

Cost Category Standard Cost per 100 Two-Liter Bottles Direct labor $4.00 Direct materials 9.10 Factory overhead 0.55 Total $13.65 A. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for GBC, assuming planned Genie in a Bottle Company Manufacturing Cost Budget For the Month Ended July 31, 2016 Standard Cost at Planned Volume 380,000 Bottles) Manufacturing Costs 2 Direct labor 3 Direct materials Factory overhead 5 Total

Explanation / Answer

Requirement c:

Interpretation:

Based on the actual results and standards, it is very clear that the actuals have met the standards in case of direct material and direct labor but shows adverse effect in case of factory overhead.

Requirement A: Genie in a bottle company Manufacturing Cost Budget for the month ended July 31 2016 Manufacturing Costs Standard Cost at planned Volume (380000 bottles) Direct Labor 15200 380000*4/100 Direct Materials 34580 380000*9.1/100 Factory Overhead 2090 380000*0.55/100 Total 51870 Requirement B: Genie in a bottle Company Budget Performance Report For the month ended July 31 2016 Manufacturing Costs Actual Costs Standard Costs at Actual Volume (385000 bottles) Cost Variance F/U Direct Labor 14860 15400 540 F Direct Materials 33824 35035 1211 F Factory Overhead 2582 2117.5 464.5 U Total 51266 52553 2216 F

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.