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Beverage Produvts, LLC: performance report East Coast plantBeverage 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 CoastCenter costsRolled aluminum ($0.01) $4,000,000 $3,492,000 $5,040,000Lids ($0.005) $2,000,000 $1,980,000 $2,016,000Direct Labor ($0.0025) $1,000,000 $864,000 $1,260,000Small tools and supplies($0.0013) $520,000 $432,000 $588,000Depreciation and rent $480,000 $480,000 $480,000Total cost $8,000,000 $7,248,000 $9,384,000Performance measuresCans processed per hour 45,662 41,096 47,945Average daily pounds of scrap metal 5 6 7Cans processed (in millions) 400 360 4201. 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”.
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”.