Beverage products llc manufactures metal beverage

Reference no: EM13600043

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 Cost

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 520,000 432,000 588,000
Depreciation and Rent 480,000 480,000 480,000

Reference no: EM13600043

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