Beverage Products, LLC, manufactures metal beverage containers.

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:


Beverage Products, LLC, manufactures metal beverage containers.


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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