Prepare a performance report


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

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Prepare a performance report
Reference No:- TGS0679392

Expected delivery within 24 Hours