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Budget Performance Report Salisbury 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 100 TWO-Liter Bottics Direct labor $1.20 Direct materials 6.50 Factory overhead 1.80 Total 59.50 At the beginning of March, Salisbury's management planned to produce 500,000 bottles. The actual number of bottles produced for March was 525,000 bottles. The actual costs for March of the current year were as follows: Cost Category Actual Cost for the Month Ended March 31 Direct labor $6,550 33,800 Direct materials Factory overhead 9,100 Total $49,450 a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. Salisbury Bottle Company Manufacturing Cost Budget For the Month Ended March 31 Standard Cost at Planned Volume (500,000 Bottles) Manufacturing costs: Direct labor Direct materials Factory overhead a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for Salisbury, assuming planned production. Salisbury Bottle Company Manufacturing Cost Budget For the Month Ended March 31 Standard Cost at Planned Volume (500,000 Bottles) Manufacturing costs: Direct labor Direct materials 10000 Factory overhead Total direct materials, direct labor, and factory overhead for March. Enter a favorable variance as a negative number using a b. Prepare a budget performance report for manufacturing costs, showing the total cost variances minus sign and an unfavorable variance as a positive number. Salisbury Bottle Company Manufacturing Costs-Budget Performance Report For the Month Ended March 31 Standard Cost Cost Variance- Actual at Actual Volume (Favorable) Costs (525,000 Bottles) Unfavorable Manufacturing costs: Direct labor Direct materials 1000 Factory overhead Total manufacturing cost C. The Company's actual costs were $425 than budgeted direct materials and factory overhead cost variances more than offset a small direct labor cost vanance

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