exercise 7 3 algorithmic budget performance report 596422

Aug 29, 2021 | Uncategorized

Exercise 7-3 (Algorithmic) Budget Performance Report

Warwick Bottle Company (WBC) 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 Bottles

Direct labor Direct materials Factory overhead Total

$1.40 5.30 0.36

$7.06

At the beginning of March, WBC management planned to produce 520,000 bottles. The actual number of bottles produced for March was 560,000 bottles. The actual costs for March of the current year were as follows:

Cost Category Actual Cost for the Month Ended March 31, 2012

Direct labor Direct materials Factory overhead Total

$8,000 28,970 2,040

$39,010