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. The master budget for a plant and the operating results of the two North American plants, East Coast and West coast, are as follows:

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.

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Master West East Coast Budget Coast Center costs Rolled aluminum (S0.01) Lids ($0.005) Direce labor (S0.0025) Small tools and su Depreciation and rent Total cost Performance measures Cans processed per hour Average daily pounds of scrap metal Cans processed in millions) $4,000,000 S3,492,000 $5,040,000 2,000,000 1,980,000 2,016,000 1,000,000 864,000 1,260,000 432,000 588,000 480,000 480,000 $8,000,000 S7,248,000 S9,384,000 pplies (0.0013)520,000 432 480,000 45,662 41,096 6 360 47,945 7 420 400