Evaluating Cost Center Performance
P 1. 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 aluminum ($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 | $8,000,000 | $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 | |
Required
1. Prepare a performance report for the East Coast plant. Include a flexible budget and variance analysis.
2. Prepare a performance report for the West Coast plant. Include a flexible budget and variance analysis.
3. Compare the two plants, and comment on their performance.
4. Explain why a flexible budget should be prepared. Traditional and Variable Costing Income Statements
Economic Debate- Progressive Income Tax For this Economic Debate, we are going to discuss the…
TOPIC: Going Global Discussion Thread 1 (initial post due Wednesday for full credit) Please note:…
Assignment Topic This week will culminate in the creation of a narrated PowerPoint to create…
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted…
you need to post your 2-page information flier to share with your Final Project Group.…
discussion: Discuss the methods used at your company to measure and ensure quality products and…