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Process Activity Analysis Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities: 1. Mixingt water, sugar, and beverage

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Process Activity Analysis Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities: 1. Mixingt water, sugar, and beverage concentrate are mixed. 2. Filling: moxed beverage is filled into 12-02, cans, 3. Packagingt properly filled cans are boxed into cardboard "fridge packs." The activity costs associated with these activities for the period are as follows: The activity costs do not include materials costs, which are ignored for this analysis. Each can is expected to contain 12 ounces of beverage. Thus, after being flied, each can is automatically weighed. If a can is too light, it is rejected, or "kicked," from the filling line prior to being packaged. The primary cause of kieks is heat. expansion. With heat expansion, the beverage overflows during filling, resulting in underweight cans. This process begins by mixing and filing 10,920,000 cans during the period, of which only 10,500,000 cans are actually packaged. 420,000 cans are rejected due to underweight kicks. A process improvement team has determined that cooling the cans prior to filling them will reduce the amount of overfiows due to expansion. After this improvernent, the number of kicks is expected to decline from 420,000 cans to 105,000 cans, thus increasing the number of filed cans to 10,815,000 [10,500,000 + (420,000105,000)] a. Determine the total activity cost per packaged can under present operations. Reund to the nearest cent. per can b. Determine the amount of increased packaging activity costs from the expected improvements: Determine the expected total activity cost per packsged can affer improvements. Found to three decimal places. 1. Mixing: water, sugar, and beverage concentrate are mixed, 2. Filling: maxed beverage is filled into 12-02, cans. 3. Packagingt properly filled cans are boxed into cardboard "fridge packs." The activity costs associated with these activities for the period are as follows! The activity costs do not inchude materials conts, which are ignoced for this analysis, Each can is expected to contain 12 ounces of beverage. Fhus, after being filied, each can is automabcaily weighed. If a can is too light, it is rejected, or "kocked," from the filling line prioc to being packaged. The primary eause of kicks is bebt expansion. With heat expansion, the beverage averflows during filing, resulting in underweight cant. This process begins by miking and filling 10,920,000 cans during the period, of which only 10,500,000 cans ace actually packaged, 420,000 cans are rejected due to underweight kicks A process improvement team has detemined that cooling the cans prior to faing them wili feduce the amount of ererfiews due to expansion. Ater this imbrovement. the number of kicks is expected to dedine from 420,000 cans to 105,000cans, that increating the humber of hlled cans to 10,315,000 (io,s00,600 + (420,006 105,000)1 a. Determine the fotal sctivity cout per packsged can undee present operationt. Mound to the nearent cent. ber can b. Determine the amount of increased pockaging actwily costs from the expected improvements. c. Determine the expected total activity cost per packaged can after improvements. Round to three decimal places. per can

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