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Process Activity Anelysis Brhe Beverage Compery bottles soft drinks into aluminum cans. The manufacturing process contiats of three activibest: 1. Mixingt water, sugaz, and beverege
Process Activity Anelysis Brhe Beverage Compery bottles soft drinks into aluminum cans. The manufacturing process contiats of three activibest: 1. Mixingt water, sugaz, and beverege concentrate are mixed. 2. Filling: mixed beverage is filled into 12 -ot. cans. 3. Packaging: peoperty nilled cans are boxed into cardboard " "rridge packs." The activity costs associated with these activities for the period are as followz] \begin{tabular}{lr} Mxing & $397,000 \\ Filling & 352,000 \\ Packaging & 91,000 \\ \hline Total & $3840,000 \\ \hline \end{tabular} The activity costs do not indude materials corts, which are ignored for this analysis. Fach can is expected to contain 12 ounces of beversae. Thus, after being filled, onch can is auternatically weighed. If a can is too tight, it is rejected, or "Wicked," from the fiting, line prior to being packaged. The primary cause of kids is heat expansion. Whth heat exparsion, the beverage overfioms during filling, tesulting in underreight cans This process begins by miving and flling 7,280,000 cans during the period, of which onfy 7,000,000 cans are actually packaged. 280,000 cans are rejected due to underneight kichs. A process improvement team has determined that cooling the cans prior to filing them will reduce the amount of overflews due to expansian. Aftar this ingrovement, the number of kicks if expected to decine from 280,000 cans to 70,000 cans, thut incressing the number of filied cans to 7,210,000(7,000,000+(260,00070,000)]. a. Determine the total activity cost per packaged can under present cperations. Mound to the nearest cent. per can b. Determine the amount of increased packaging activity costs from the expected improvements. c. Determine the expected totar activity cost per packoged can after imorovements. Peund to three decimal piaces. per can
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