Prepare a performance report for the west coast plant

Reference no: EM13574550

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:Master Budget East Coast West Coast

Center costs

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 45,662 41,096 47,945
Average daily pounds of scrap metal 5 6 7
Cans processed (in millions) 400 360 420

1. Prepare a performance report for the East Coast plant. Include a flexible budget and variance analysis. Enter F for favorable variance, and U for unfavorable variance. If an amount is zero, enter "0".

Beverage Production, LLC
Performance for the West Coast Plant
Actual Results Variance F/U Flexible Variance F/U Master Budget
Budget
Center costs
Rolled aluminum($0.01)
Lids($0.005)
Direct Labor($0.0025)
Small tools and supplies($0.0013)
Depreciation and rent
Total cost
Performance measures
Cans processed per hour
Average daily pounds of scrap metal
Cans processed (in millions)

2. Prepare a performance report for the West Coast plant. Include a flexible budget and variance analysis. Enter F for favorable variance and U for unfavorable variance. If an amount is zero, enter "0".

Beverage Production, LLC
Performance for the West Coast Plant

Actual Results Variance F/U Flexible Variance F/U Master Budget
Budget
Center costs
Rolled aluminum
Direct Labor($0.0025)
Small tools and supplies
Depreciation and rent
Total cost
Performance measures
Cans processed per hour
Average daily pounds of scrap metal
Cans processed

Reference no: EM13574550

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