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

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Process Activity Analysis The Brite Beverage Company botties soft drinks into aluminum cans. The manufacturing process consists of three activities: 1. Mhing: water, sugar, and beverage concentrate are mixed. 2. Fillingt mixed beverage is filed into 12 -oz, cans. 3. Packaging: 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 aunces of beverage. Thus, after being filied, each can is automatically weighed. If a can is too light, it is rejected, or "kicked," from the fiting line prior to being packaged. The primary cause of kicks is heat expansion. With heat expansion, the beverage overflows during filing, resulting in underweight cans. This process begins by mixing and filing 9,360,000 cans during the peried, of which only 9,000,000 cans are actually packaged. 360,000 cans are rejected due to underweight kicks. A process improvement team has determined that cooling the cans prior to niling them will reduce the amount of overflows due to expansion. After this improvement, the number of kicks is expected to dedine from 360,000 cans to 90,000 cans, thus increasing the number of filled cans to 9,270,000 99,000,000 +(360,00090,000)] a. Determine the total activity cost per packaged can under present operations. Round to the nearest cent. perir can b. Determine the amount of increased packaging activity costs from the expected improvements. A process improvement team has determined that cooling the cans prior to filling them will reduce the amount of overflows due to expansion, After this improvement, the number of keks is expected to dedine from 360,000 cans to 90,000 cans, thus increasing the number of flled cans to 9,270,000 9,000,000 +(360,000+90,000)] a. Determine the total activity cost per packaged can under present operations, Round to the nearest cent. per can b. Determine the amount of increased packaging activity 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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