Beverage products llc manufactures metal beverage

Reference no: EM13595799

Beverage Products, LLC, manufactures metal beverage containers. The division that manufactures soft-drink beverage cans for the North American market has two plants that operate 24 hours a day, 365 days a year. The plants are evaluated as cost centers. Small tools and supplies are considered variable overhead. Depreciation and rent are considered fixed overhead. The master budget for a plant and the operating results of the two North American plants, East Coast and West Coast, are as follows:

Center costs Master Budget East Coast West Coast

Rolled alumium ($0.01) $4,000,000 $3,492,000 $5,040,000
Lids ($0.005) 2,000,000 1,980,000 2,016,000
Direct labor ($0.0025) 1,000,000 864,000 1,260,000
Small tools and supplies ($0.0013) 520,000 432,000 588,000
Depreciation and rent 480,000 480,000 480,000
Total cost $8,000,00 $7,248,000 $9,384,000

Performance measures

Cans processed per hour 45662 41096 47945
Avg daily pounds of scrap metal 5 6 7
Cans processed (in millions) 400 360 420

Reference no: EM13595799

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